Guar yesterday we have seen that market has moved -1.27% on a decline in spot demand and estimates of higher production. Projection of higher output is weighing on sentiment and may keep the prices under pressure. Demand for guar gum has come down in the physical market and is likely to pick-up only after the first week of January when overseas traders will come back from holidays. 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 -40.8 rupees to 2303.1 rupees per 100 kg. Market has opened at 2434 & made a low of 2381 versus the day high of 2455. The total volume for the day was at 228680 lots and the open interest was at 166900.Now support for the guar is seen at 2376 and below could see a test of 2341. Resistance is now likely to be seen at 2450, a move above could see prices testing 2489.

Trading Ideas:

Guar trading range is 2341-2489.

Guar ended lower due to decline in spot demand

Guar is taking resistance at 2438 and support is seen at 2376.

NCDEX accredited warehouses guar stocks rose 159 tonnes to 51731 tonnes.

In Jodhpur guar prices dropped -40.8 rupees to 2303.1 rupees per 100 kg.