Short of stocks, Guar continues to hit high

Guar yesterday we have seen that market has moved 2.28%, hitting fresh highs on Tuesday trade on lower output concerns due to crop damage in key growing areas.

A poor monsoon has damaged nearly 70 percent of standing guar crop in Rajasthan, which accounts for four-fifth of the country's guar acreage.

The crop output is down by at least 50 percent and some export demand for premium quality guar gum in Haryana is pushing prices up in the spot market.

Yesterday market has opened at 2498 & made a low of 2498 versus the day high of 2555. The total volume for the day was at 90240 lots and the open interest was at 66820.Now support for the guar is seen at 2505 and below could see a test of 2473.

Resistance is now likely to be seen at 2562, a move above could see prices testing 2587.

Trading Ideas:

GUAR TRADING RANGE IS 2470-2590.
GUAR HIT FRESH HIGHS DUE TO CROP DAMAGE IN KEY GROWING AREAS
BUY GUAR NOV AT 2520-2532 SL 2498 TGT 2556-2570-2592.
NOW SUP IS AT 2422 BELOW THIS NEXT SUP IS AT 2506-2488 LVL.
GUAR IS TAKING RESIST OF 2558 ABV THIS NEXT RESIST AT 2563-2587.
IN BIKANER PRICES ROSE BY OVER 60 RUPEES AND ENDED AT 2512.50 RUPEES PER 100 KG

Courtesy: Kedia Commodities

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