Guar yesterday we have seen that market has moved -0.35% as higher output that is likely to hit the market in a week's time. The trend is bearish because there is a big jump in output. Guar seed output in Rajasthan, the country's top producer, is expected to rise to 1.51 million tonnes in 2010/11 compared with 201,000 tonnes in the previous year, boosted by higher area and good monsoon rains. In Jodhpur guar prices dropped -18.55 rupees to 1965.1 rupees per 100 kg. Market has opened at 2007 & made a low of 1980 versus the day high of 2010. The total volume for the day was at 116030 lots and the open interest was at 145680.Now support for the guar is seen at 1981 and below could see a test of 1966. Resistance is now likely to be seen at 2011, a move above could see prices testing 2026.

Trading Ideas:

Guar trading range is 1966-2026.

Guar settled weak as higher output that is likely to hit the market

Guar is taking resistance at 2011 and support is seen at 1981.

NCDEX accredited warehouses guar stocks rose 198 tonnes to 28219 tonnes.

In Jodhpur guar prices dropped -18.55 rupees to 1965.1 rupees per 100 kg.