Guar yesterday we have seen that market has moved -1.19% down at 2439 as per expectation as still fundamentals are creating pressure as fresh arrivals and estimates of higher production weighed on sentiment. 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. Higher margins on the buy position are also weighing on sentiment. India is the world's largest producer and exporter of guar gum and supplies 80 percent of the global demand. In the Jodhpur spot market in Rajasthan, guar seed fell 47 rupees to end at 2,300 rupees per 100 kg. The total volume for the day was at 236160 lots and the open interest was at 164790.Now support for the guar is seen at 2393 and below could see a test of 2371. Resistance is now likely to be seen at 2440, a move above could see prices testing 2465.

Trading Ideas:

Guar trading range is 2373-2467.

Guar dipped on low demand as exporters chose to stay away from market while fresh arrivals added to the fall.

Guar seed output is expected to rise to 1.51mts in 2011, boosted by higher area and good monsoon

Higher margins on the buy position are also weighing on sentiment and further fall can be seen in the market

SELL GUAR JAN @ 2430 SL 2458 TGT 2408-2390.NCDEX

In Jodhpur guar prices dropped -47.15 rupees to 2299.6 rupees per 100 kg.