MCX
+4.8
NCDEX
0
Fundamental Analysis
In the Physical markets of Guar, good demand for Guar seed has been observed since last week. However, demand for Guar gum continues to remain lackluster and thus prices are not gaining much.
Comfortable carryover stocks of Guar gum coupled with subdued overseas demand were pressurizing Guar futures since last 3-4 weeks.
Millers were not buying Guar seed at high prices as they have huge stocks of Gum and also there is a huge disparity in the price of seed and gum. However, demand for Guar seed has improved during the last week.
Overseas demand is expected to pick up in the coming days and prices might recover slightly thereafter.
Technical Analysis
14-days RSI is at 47.97 is in a neutral zone.
Prices on daily charts have closed above its 10-days EMA but still below the 20-days EMA indicating a sideways trend.
Closing above the 20 days EMA may reverse the trend in the short term prices might gain 100-125 Rs.
MACD has turned positive since last 2 days.
Outlook
Guar seed futures are likely to trade range bound in the intraday as lower level buying in the physical markets is seen offsetting the weak sentiments prevailing due to sluggish overseas demand. The Market has already discounted the fact of drop in guar 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. As long as the overseas demand remain lackluster Guar futures may remain range bound with weak bias in both physical and futures market (Short Term).
Courtesy: Angel Commodities
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