Menthaoil September contract dropped Rs 4.5 and settled at Rs 1337 as lack of significant trading activities kept overall market sentiments moderately weak. The Delhi government is set to ban sale, manufacturing, distribution and storage of all gutka products in the city by next week. After giving a verbal undertaking to the Delhi High Court last week, the government on Monday cleared the file pertaining to the ban and has sent it to the lieutenant-governor for final clearance. The ban will also be imposed on pan masalas containing nicotine and tobacco. Overall trading activities remained low as adverse reports of ban on Pan masala in some other States also pressurized the market sentiments. Mentha oil arrival reported around 600-650 drums in different spot markets. In Rampur, mentha oil (68 GLC) quoted at Rs 1,490 per kg, in Chandausi Rs 1,510 per kg, in Sambhal at Rs 1,510 a kg, in Barabanki at Rs 1,445 a kg. On 28th August total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 15, 407 kg of which 98,869 kg was physical stock and demat stock was 16, 538 kg. At Barabanki, the total stock was 24, 12, 927 kg of which, physical stock accounted for 19, 88,406 and demat stock was 4, 24, 521 kg. The contract made intraday low of Rs 1334.1 a kg and high of Rs 1343.9 a kg with the volume of 2623 and total open interest for the same contact was at 5735. Now support for the menthol is seen at 1332.8 and below could see a test of 1328.5. Resistance is now likely to be seen at 1342.6, a move above could see prices testing 1348.1.

Trading Ideas:

Mentha oil trading range for the day is 1328.5-1348.1.

Menthaoil spot is at 1508/-.Spot market is up by Rs. 6/-.

Menthaoil dropped as lack of significant trading activities kept overall market sentiments moderately weak

Delhi government is set to ban sale, manufacturing, distribution and storage of all gutka products by next week

Mentha oil arrival reported around 600-650 drums in different spot markets.