Guar yesterday we have seen that market has moved -0.93% tracking sluggish trade in spot due to estimates of higher output but good demand for guar gum restricted the downside. Projection of higher output is weighing on sentiment and may keep the prices under pressure. Guar seed output in Rajasthan, the country's top producer, is expected to rise to 1.51 million tonnes in 2010/11, boosted by higher area and good monsoon rains. In Jodhpur guar prices dropped -9.1 rupees to 2353.35 rupees per 100 kg. Market has opened at 2484 & made a low of 2453 versus the day high of 2485. The total volume for the day was at 145700 lots and the open interest was at 173030.Now support for the guar is seen at 2448 and below could see a test of 2434. Resistance is now likely to be seen at 2480, a move above could see prices testing 2498.

Trading Ideas:

Guar trading range is 2436-2500.

Guar ended lower tracking weak spot market due to estimates of higher output

Guar is taking resistance at 2480 and support is seen at 2448.

NCDEX accredited warehouses guar stocks rose 2443 tonnes to 51363 tonnes.

BUY GUAR JAN ABV 2484 SL 2456 TGT 2518-2536-2550.NCDEX

In Jodhpur guar prices dropped -9.1 rupees to 2353.35 rupees per 100 kg.