Mentha oil June contract dropped Rs 10.9 and settled at Rs 707.5 a kg as selling momentum sustained throughout the day. Traders are selling under immense selling pressure as key centres received up to 1,000 drums of mentha oil. The contract made intraday low of Rs 706 a kg and high of Rs 722 a kg with the volume of 2191 and total open interest for the same contact was at 2606.Now support for the menthol is seen at 701.7 and below could see a test of 695.8. Resistance is now likely to be seen at 717.7, a move above could see prices testing 727.8.

Trading Ideas:

Menthol Oil trading range is 695.8-728.
Mentha oil spot is at 710. Spot is down by Rs.10/-.
Resistance for the mentha oil is at 713.40 and support is at 702.80.
Key centres received up to 1,000 drums of mentha oil
Mentha oil continued it weak trend as expected as selling momentum sustained
SELL MENTHOL @ 709-712 SL 716.50 TGT 704.50-700-696.50.MCX (STBT)