Guar seed yesterday traded with the positive node and settled 1.11% up at 2439 due to bargain-buying triggered by a fall in the daily arrivals amid spot demand. Overall sentimental are weak on estimates of higher production and higher margins on buy positions but a slowdown in the daily arrivals restricted the losses. Demand for guar gum is very less because of the New Year vacations. Fully fledged demand is expected to come only after Jan. 15. Till then, guar futures are expected to trade range-bound with negative bias. In the Jodhpur spot market in Rajasthan, guar seed ended steady at 2,321 rupees per 100 kg. 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. For today's session market is looking to take support at 2418, a break below could see a test of 2397 and where as resistance is now likely to be seen at 2458, a move above could see prices testing 2477.

Trading Ideas:

Guar trading range is 2397-2477.

Guar traded with the positive due to bargain buying on fall in daily arrival but still sentimental is weak.

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

GUAR SOME SUPPORT CAN BE SEEN TILL 2460 WILL WAIT TO HAVE POSITION.

In Jodhpur guar prices gained 12.9 rupees to 2334.3 rupees per 100 kg.