Guarseed yesterday we have seen that market has moved 0.23% on the back of firm demand in the overseas markets amid limited stocks in the domestic markets. Lower productions prospects than earlier estimates, overall strength in Dollar aiding exports and reports of lower stocks are likely to support the market sentiments in medium term however. Anticipations of further rise in exports in coming weeks could aid the uptrend further as per traders. Special margin of 10% is being imposed on long side of all running contracts with effect from December 27th 2011. Thus, from tomorrow total margin on long side of Guarseed and Guargum would be around 40% which includes special margin of 30%.Guar seed output in Rajasthan is estimated at 11.36 lakh tonnes for 2011-12 season, down by 25% compared to 15.46 lakh tonnes in 2010-11 (Rajasthan Farm Dept). Production of Guar in Haryana and Gujarat is expected to be 0.2 lakh tonnes and 0.07 lakh tonnes respectively in 2011- 12. In Jodhpur guarseed prices dropped -187.7 rupees to 6789.45 rupees per 100 kg. Market has opened at 6980 & made a low of 6780 versus the day high of 7175. The total volume for the day was at 140320 lots and the open interest was at 83010.Now support for the guarseed is seen at 6840 and below could see a test of 6613. Resistance is now likely to be seen at 7235, a move above could see prices testing 7403.

Trading Ideas:

Guarseed trading range is 6967-7367.

Guarseed gained on the back of firm demand in overseas markets amid limited stocks in domestic markets

Anticipations of further rise in exports in coming weeks could aid the uptrend further

NCDEX accredited warehouses guarseed stocks gained by 1309 tonnes to 72690 tonnes.

In Jodhpur guarseed prices remains unchanged at 0 rupees to 0 rupees per 100 kg.