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Mentha oil little changed; muted spot demand weigh on futures trade

NEW DELHI: Mentha oil prices were little changed in futures trade on Thursday as demand from consuming industries remained muted at the spot market.

Around 11:25 am, MCX Mentha oil was at Rs 1,251.50 per kg, up by Rs 4.70, or 0.38 per cent.

The sentiment for mentha oil is bearish due to a surge in new crop arrivals amid subdued demand from stockists.

While the fundamental remains weak, technical charts, too, are uninspiring.

“One should wait for the prices of the commodity to bounce till the levels around Rs 1,290-1,300. If it does not sustain above these levels, then one should go for sell on rise in mentha oil July futures,” said Romesh Tiwari, Head of Research, CapitalAim.

Mentha oil July futures on the daily charts breached the support at Rs 1,290 this week and now is sustaining below this level. However, prices did not sustain below the support of Rs 1,250 as well.

“RSI on daily charts is showing some recovery from lower levels and now placed at 41.76 levels. It has resistance at Rs 1,290 and Rs 1,360 whereas it will have support at Rs 1,235 and Rs 1,170,” Tiwari added.

Source: Economic Times