Page 7 - 1964_Value Plus SEP 2016

Guar Seed

Guar Seed: Bulls are back on
the driver’s seat

CMP: ` 3484 (As on 02nd Sep, 2016) Madhya Pradesh have preferred Tur dal. Thus, the acreage of
Guar Seed is already low while demand from other countries is
Buy: ` 3484-3400 expected to soar in coming months. Carry-over stocks will also
not help much as strong dollar will prompt traders to liquidate
Target Price: ` 3800-4200 positions. On technical chart, Guar Seed has just completed
the final leg of an important harmonic pattern called ‘three
Stop-Loss: < ` 3300 drives’. Each drive in this pattern is identified by a dip and a
bounce back, both being in sync on Fibonacci retracement levels
Guar Seed is one of the most speculative agro and time taken. The completion of these three drives means a
commodity traded on Indian bourses. From beginning of full-fledged bullish rally as the pattern has also
trading at a meager Rs 2000 per quintal to forming marked the completion of 4th wave.
a gigantic rally that took prices to Rs 25000 per
quintal and then tumbling back to the former We recommend buying Guar Seed October contract at CMP
figure, Guar Seed has seen it all. At present, prices Rs 3484 and on dips till Rs 3400 for targets in the range of
are hovering around Rs 3400 per quintal and the Rs 3800-4200. Maintain stop loss below Rs 3300.
commodity is looking all set for a big bullish rally
from here, thanks to some positive developments on
fundamental and technical level.

Fundamentally, harvest will start next month and
arrivals will hit the mandis in late October till
November end. The supply is likely to remain tight
in this season as many farmers from guar growing
areas like Rajasthan, Gujarat and north-west

7 ARIHANT CAPITAL ¡ SEPTEMBER 2016