Mentha oil January contract gained Rs 6.6 and settled at Rs 1178.6 a kg on moderately buying from the lower levels as traders apprehend export and domestic demand to rise at these low levels. Expected rise in export and domestic demand from pharmaceutical Industries are likely to provide further support to the prices in the medium term, reports of fall in production and a rise in demand at lower levels is expected though traders are not ruling out intermittent profit booking at higher levels before demand rises in the mandis again Expected fall in production is likely to keep sentiments up for Mentha in the medium term. Traders are also reportedly holding back stocks in anticipation of a rise in price in the coming weeks. Expectations of lower production and rising export demand from China are expected to provide support to the prices in medium term. Yesterday contract made intraday low of Rs 1170.7 a kg and high of Rs 1183.9 a kg with the volume of 2719 and total open interest for the same contact was at 3634. Now support for the menthol is seen at 1171.6 and below could see a test of 1164.5. Resistance is now likely to be seen at 1184.8, a move above could see prices testing 1190.9.

Trading Ideas:

Mentha Oil trading range is 1164.8-1191.

Mentha oil spot is at 1261/-.Spot market is up by Rs 4/-.

Mentha ended firm as moderate buying witnessed on the lower levels

Mentha oil looks to take support at 1171.60 level

Resistance for the mentha oil is seen at 1184.80 level.