Guarseed ended flat recovering from its decline in last couple of days on pickup in demand at the lower levels. Demand for Guargum picked up again at the lower levels supporting the market sentiments. Rains in Rajasthan over last few days too created a bearish impact as that would favor the sowing of the new crop. Predictions of lower rains for the next 2 months could however affect the sowing prospects for the crop. Any fall in productivity could have a moderate Bullish impact on the prices in the coming months. An increase in sowing area this year cannot be ruled out after the record prices seen last few months. Lower arrivals, low stocks and expected rise in export demand from US and EU along with stockists demand are however expected to support the prices. The trend is likely to remain volatile in short term depending on the demand and arrivals in the mandis. In Jodhpur guarseed prices gained 84.3 rupees to 4133.45 rupees per 100 kg. Market has opened at 4299 & made a low of 4218 versus the day high of 4360. The total volume for the day was at 227100 lots and the open interest was at 99570.Now support for the guarseed is seen at 4205 and below could see a test of 4140. Resistance is now likely to be seen at 4347, a move above could see prices testing 4424.

Trading Ideas:

Guarseed trading range is 4140-4424.

Guarseed ended flat recovering from its decline in last couple of days on pickup in demand at lower levels.

An increase in sowing area this year cannot be ruled out after the record prices seen last few months

NCDEX accredited warehouses guarseed stocks dropped by 901 tonnes to 67803 tonnes.

In Jodhpur guarseed prices gained 84.3 rupees to 4133.45 rupees per 100 kg.