Menthol February contract dropped Rs -4.2 and settled at Rs 568.9 a kg overall trading in the line of our expectation as told earlier also that this year stocks are good and trader are eyeing for mandi tax to be impose in the near term creating selling pressure in the market. Yesterday contract made intraday low of Rs 565.7 a kg and high of Rs 573.9 a kg the volume stood at 1197lots and open interest was at 3762. Now support for the menthol is seen at 565.1 and below could see a test of 561.3. Resistance is now likely to be seen at 573.3, a move above could see prices testing 577.7.

Trading Ideas:

Menthol Oil trading range is 567.5-575.

Menthol spot is at 634/-. Spot is down by Rs. 4/-.

Stocks are good and trader are eyeing for mandi tax to be impose in the near term creating selling

Menthol support is at 564.30 level and resistance is at 574.50level

Overall a break below 560 look to hold its support at 554 level.

SELL MENTHOL FEB @ 572-574 SL 579.50 TGT 568.80-565.50-562. MCX