Guarseed yesterday we have seen that market has moved 3.13% on short-covering after a sharp correction in prices, and due to lower stocks with traders amid a lack of fresh arrivals.
Exporters were not signing fresh contracts due to a recent rally in guar prices, which could push prices lower. However, a lack of supplies in the spot market could prevent a sharp fall.
The NCDEX reduced the total special margin imposed on guar gum and Guar Seed on all long positions to 50 percent from 60 percent effective Feb. 7.
According to the Agricultural and Processed Food Products Export Development Authority, guar gum exports increased by 75 per cent during the first half of the current fiscal to 3.47 lakh tonnes (1.98 lakh tonnes).
Postponement of launch of August contract for Guarseed and Guargum by NCDEX too affected the market sentiments as the contracts hit the lower circuits.
Overall fundamentals remained bullish from good exports, lower production and low stocks but some more short term corrections cannot be ruled out.
In Jodhpur guarseed prices gained 258.15 rupees to 12125.25 rupees per 100 kg. Market has opened at 11750 & made a low of 11572 versus the day high of 12173.
The total volume for the day was at 23860 lots and the open interest was at 26700.Now support for the guarseed is seen at 11704 and below could see a test of 11337.
Resistance is now likely to be seen at 12305, a move above could see prices testing 12539.
Trading Ideas:
Guarseed trading range for the day is 11337-12539.
Guarseed ended up on short-covering after a sharp correction in prices, and due to lower stocks
Exporters were not signing fresh contracts due to a recent rally in guarseed, which could push prices lower
NCDEX accredited warehouses guarseed stocks dropped by 29 tonnes to 53487 tonnes.
In Jodhpur Guarseed prices were gained by 258.15 rupees to 12125.25 rupees per 100 kg.
Courtesy: Kedia Commodities
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