Mentha oil January contract gained Rs 13.1 and settled at Rs 1176 a kg support had been seen from the improvement in domestic and export demand in mentha oil took the prices up side. As per market reports, some more dips may be there in the short term though expected rise in demand at lower levels could support the rates in the medium term. Expected rise in export and domestic demand from pharmaceutical Industries are likely to provide further support to the prices in the medium term. Spread between menthol oil JAN & FEB contracts yesterday ended at -1.70, which was early seen that further months had dropped till 20rs discount as compare with the current month. For the today january contract made intraday low of Rs 1160 a kg and high of Rs 1180.9 a kg with the volume of 3675 and total open interest for the same contact was at 4786. Now support for the menthol is seen at 1163.7 and below could see a test of 1151.4. Resistance is now likely to be seen at 1184.6, a move above could see prices testing 1193.2.

Trading Ideas:

Mentha Oil trading range is 1151.9-1194.

Mentha oil spot is at 1271/-.Spot is up by Rs. 11/-.

Mentha oil ended yesterday higher on short covering

Mentha oil looks to take support at 1163.70 level

Resistance for the mentha oil is seen at 1184.60.

BUY MENTHOL FEB @ 1165 SL 1158 TGT 1172-1180.MCX