Guarseed yesterday we have seen that market has moved 4.01% fuelled by strong export demand, a weak rupee and fears output may fall this year. India's NCDEX has levied a special margin of 10 percent on long side contracts of guar gum and seed, effective Tuesday, to curb the spike in prices. Long term fundamentals remain supportive for the prices, current market conditions do not support the upside rally as arrival season is ongoing in the domestic markets. On the back of record high exports, the exports federation has urged the Government to withdraw export promotion incentives and impose export duty on guar seeds. However, no decision on same has been taken yet. Guar Seed arrivals dropped by 5,000 bags to 1,20,000 bags (Arrivals from Rajasthan were around 1,00,000 bags and Haryana around 20,000 bags). In Jodhpur guarseed prices gained 233.95 rupees to 5949.4 rupees per 100 kg. Market has opened at 6078 & made a low of 6045 versus the day high of 6244. The total volume for the day was at 236780 lots and the open interest was at 183800. Now support for the guarseed is seen at 6111 and below could see a test of 5979. Resistance is now likely to be seen at 6310, a move above could see prices testing 6377.

Trading Ideas:

Guarseed trading range is 5979-6377.

Guarseed continued its rising streak fuelled by strong export demand

India's NCDEX has levied a special margin of 10 percent on long side contracts of guarseed

NCDEX accredited warehouses guarseed stocks gained by 1511 tonnes to 44796 tonnes.

In Jodhpur guarseed prices gained 233.95 rupees to 5949.4 rupees per 100 kg.