Menthaoil June contract gained Rs 4.7 and settled at Rs 867.8 on short covering. Reports of fall in production last year 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. The contract made intraday low of Rs 853.2 a kg and high of Rs 867.8 a kg with the volume of 574 and total open interest for the same contact was at 1432.Now support for the menthol is seen at 858.1 and below could see a test of 848.3. Resistance is now likely to be seen at 872.7, a move above could see prices testing 877.5.

Trading Ideas:

Menthaoil trading range is 848.3-878.

Menthaoil spot is at 1000/-.Spot market is up by Rs.18/-.

Menthaoil yesterday gained by 0.54% on short covering

Menthaoil looks to take support at 858.10 and resistance at 872.70.

On May 27th, total stock of mentha oil at MCX warehouses at Chandausi was 25,550 kg