Bearish trend is likely to continue in guarseed due to strong carryover stocks in local mandies coupled with sluggish trend of crude oil in international market. The NCDEX futures to test 4760-4770 levels today.
Traders estimated that around 95 lakh tonnes of stocks are available in local mandies. This can easily meet demand of guarseed in the coming 3-4 months. Moreover,weakness in crude oil prices will also pressurized the guarseed in the near term. The NYMEX Crude Oil futures settled at their lowest level in three weeks on Monday as uncertainty surrounding the financial crisis in Greece helped send prices lower for a fourth straight session. The NYMEX futures settled at $58.33 a barrel , lowest since June 8.
The NCDEX August futures settled at Rs 4812 per quintal, down 0.52 percent in the last trading . The NCDEX futures reduced 3.20 percent in open interest indicating liquidation of position by traders. Technically, selling is likely to be initiated from 4845-4855 levels with the downside target of 4760-4770 levels in the near term.
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