Menthol February contract dropped Rs 1 and settled at Rs 582.2 a kg trading in the range and just above the support level that is at 576 as spot market was steady due to lack of buying interest from last few day’s we have seen there was some increased buying activity from pharmaceutical and other consuming units attributed to rise in menthol prices at the wholesale chemical market. Today February contract made intraday low of Rs 577.6 a kg and high of Rs 584.3 a kg with the volume of 1569 and total open interest for the same contact was at 3774. Now support for the menthol is seen at 578.4 and below could see a test of 574.7. Resistance is now likely to be seen at 585.1, a move above could see prices testing 588.1.

Trading Ideas:

Menthol Oil trading range is 574.4-588.

Menthol spot is at 646/-. Spot is up by Rs.2/-.

Buying activity from pharmaceutical and other consuming units attributed to rise in menthol prices last week.

Menthol support is at 574 levels and resistance is likely to be seen at 588 levels.

Some bounce can be seen till 584 levels but pressure is likely to seen at that level as spot market is steady.

BUY MENTHOL FEB ON DIP @ 576-579 SL 570 TGT 582.50-586.20. MCX