Mentha oil prices inch up on tepid spot demand
Muted trading continues in mentha oil as prices are stabilizing in the area of Rs 1,480-1,530.
NEW DELHI: Mentha oil prices inched up in futures trade on Thursday after the commodity saw some demand by consuming industries at the spot market.
Speculators raised their bets after some demand emerged from consuming industries at the spot market against limited supplies from key producing regions, which helped mentha oil prices edge up in futures trade.
Around 11:40 am, MCX Mentha oil was at Rs 1,502.50 per kg, up by Rs 4.90, or 0.33 per cent.
"Muted trading continues in mentha oil as prices are stabilizing in the area of Rs 1,480-1,530. This is a very important support zone technically as prices took support at the same levels in December last year before trending to Rs 1,700," said Mustafa Nadeem, CEO, Epic Research
"The prices may consolidate in this range for a while and a break above Rs 1,520 can confirm a short-term bottom which can take prices to the higher levels of Rs 1,560-1,580. However, if prices break Rs 1,475 on the downside on a closing basis, we might see some selling pressure and the continuation of the trend for the lower levels of Rs 1,400," he added.
Speculators raised their bets after some demand emerged from consuming industries at the spot market against limited supplies from key producing regions, which helped mentha oil prices edge up in futures trade.
Around 11:40 am, MCX Mentha oil was at Rs 1,502.50 per kg, up by Rs 4.90, or 0.33 per cent.
"Muted trading continues in mentha oil as prices are stabilizing in the area of Rs 1,480-1,530. This is a very important support zone technically as prices took support at the same levels in December last year before trending to Rs 1,700," said Mustafa Nadeem, CEO, Epic Research
"The prices may consolidate in this range for a while and a break above Rs 1,520 can confirm a short-term bottom which can take prices to the higher levels of Rs 1,560-1,580. However, if prices break Rs 1,475 on the downside on a closing basis, we might see some selling pressure and the continuation of the trend for the lower levels of Rs 1,400," he added.
