Fundamental Analysis

Demand from the overseas is slow but is expected to improve from the end of March. Prices may find support only if significant demand is present from the overseas buyers.

Demand from millers is expected to improve gradually in the coming weeks. Good demand for its by-products like Churi and Korma is also supporting the prices of Guar seed.

However, due to decline in the output by almost 65-70%, it is expected that the prices will gain once again as soon as the overseas demand picks up. Further, Guar seed and gum stocks at the warehouses are depleting which may provide support to the prices in the long term (April mid onwards).

Technical Analysis

Prices on daily charts closed below its 10-days and its 20-days EMA, which indicates downward trend.

14-days RSI is at 30 and is moving towards the oversold region.

Outlook

Guar seed futures are likely to trade in sideways to down manner with lacklustre trades at the domestic market. The market has already discounted the fact of drop in guar seed output by gaining almost 58% during the last year. The prices will find support to gain further only if the overseas demand from US and China emerges in coming days.

Courtesy: Angel Commodities

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