Guarseed yesterday we have seen that market has moved 1.95% on good demand from millers and a reduction in trade margins by the exchange also aided volumes. The exchange had reduced the trading margin on guar gum to 5 percent from 10 percent and has withdrawn margins for guar seed, making it attractive for traders.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 show guar seed output in Rajasthan, the country's top producer, at 1.49 million tonnes in 2010/11, much higher than 0.20 million tonnes last year. In Jodhpur guarseed prices gained 51.5 rupees to 2853.15 rupees per 100 kg. Market has opened at 2824 & made a low of 2820 versus the day high of 2908. The total volume for the day was at 207800 lots and the open interest was at 127830.Now support for the guarseed is seen at 2825 and below could see a test of 2778. Resistance is now likely to be seen at 2913, a move above could see prices testing 2954.

Trading Ideas:

Guarseed trading range is 2778-2954.

Guarseed gained on good demand from millers and a reduction in trade margins

Guarseed is taking resistance at 2913 and support is seen at 2825.

NCDEX accredited warehouses guarseed stocks fell by 1033 tonnes to 90366 tonnes.

In Jodhpur guarseed prices gained 51.5 rupees to 2853.15 rupees per 100 kg.