Guarseed yesterday we have seen that market has moved -0.72% as buyers booked profits at higher prices, though falling arrivals kept the downside restricted. Demand of guar gum and reduction in margins to help prices recover. The exchange had reduced the trading margin on guar gum to 5 percent from 10 percent and has withdrawn margins for guar seed, making it attractive for traders. Government estimates 2010/11 guar seed output in Rajasthan, the country's top producer, at 1.49 million tonnes, much higher than 0.20 million tonnes last year.In Jodhpur guarseed prices dropped -9.55 rupees to 2857.6 rupees per 100 kg. Market has opened at 2906 & made a low of 2847 versus the day high of 2940. The total volume for the day was at 172080 lots and the open interest was at 110450.Now support for the guarseed is seen at 2841 and below could see a test of 2797. Resistance is now likely to be seen at 2934, a move above could see prices testing 2983.

Trading Ideas:

Guarseed trading range is 2794-2980.

Guarseed ended weak as buyers booked profit at higher prices

Guarseed is taking resistance at 2934 and support is seen at 2841.

NCDEX accredited warehouses guarseed stocks fell by 237 tonnes to 89779 tonnes.

In Jodhpur guarseed prices dropped -9.55 rupees to 2857.6 rupees per 100 kg.