Menthaoil February contract dropped Rs 21.1 and settled at Rs 1577 on intraday profit booking though good demand from the International markets and the domestic pharmaceutical Industries was noted. Traders expect an overall Bullish trend to prevail in the markets as arrivals in the mandis remained moderately low. The trend is likely to remain volatile in the short term as the higher levels too have not been sustainable. But medium term sentiments look positive on an expected pick up in demand in coming weeks. Rise in demand in the mandis on the domestic and the export front from European countries and China continued to support the rates. On 31th January total stock of mentha oil at MCX-monitored warehouses at Chandausi was 62,933 kg of which 53,584 kg was physical stock and demat stock was 9,349 kg. At Barabanki, the total stock was 7, 38,248 kg of which, physical stock accounted for 5, 96, 755 and demat stock was 1, 41,493 kg. The contract made intraday low of Rs 1571.6 a kg and high of Rs 1619 a kg with the volume of 10609 and total open interest for the same contact was at 4086. Now support for the menthol is seen at 1559.4 and below could see a test of 1541.8. Resistance is now likely to be seen at 1606.8, a move above could see prices testing 1636.6.

Trading Ideas:

Menthaoil trading range is 1541.8-1637.

Menthaoil spot is at 1652/-.Spot market is up by Rs. 7/-.

Mentha oil prices dropped on profit booking though good demand from the International markets

The trend is likely to remain volatile in the short term as the higher levels too have not been sustainable

On 31th January total stock of mentha oil at MCX warehouses at Barabanki was 7, 38,248 kg