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Guar Seed

Guar Seed-The ‘go-getter’ commodity!

Guar Seed April                    BUY

CMP: `3833 (As on 02nd Mar, 2017)                just ten days before quickly started to show its colors,
Buy on dips: `3670-3650                          thus confirming the underlying impulsion. Another
Target Price: `3900-4150                         notable point is the strength foreseen among momentum
Stop-Loss: < `3520                               indicators. RSI and MACD had moved into a positive
                                                 divergence long before the breakout actually happened.
After seeing a relentless fall for more than     While ADX, which is in the best stance after a long
six months, Guar seed came out of the            period of negativity had timely started to move into
tough phase recently. The highly speculative     high momentum territory well in advance. All in all,
commodity showed a gigantic rise of around       Guar is technically in a good position to swiftly shift
eighteen percent in just one fortnight, thus     into a bullish rally after a five to six percent correction
making it reclaim the lost status of hottest     that may be seen within a week. Fundamentally, prices
agro product among traders, investors and        are going to get additional advantage if crude prices
speculators in particular. The sharp bounce      rally as the demand for Gum will increase. There is also
back may shape-up into a fully fledged rally     a substantial time margin left for sowing to begin in July
in near future. Let us check on technical chart  which again is a positive factor for buyers.
whether it stand a chance or not.
                                                 We recommend buying in Guar Seed April contract
The biggest advantage Guar seed has in its       on dips to Rs 3670-Rs 3650 for targets in the range of
kitty at the moment is the very crucial and      Rs 3900-Rs 4150. Maintain stop loss below Rs 3520.
decisive break out of a tough resistance that
stood in the form of a falling trend line on                                             6 ARIHANT CAPITAL ¡ MARCH 2017
daily chart. The breakout which took place
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