Speculators raised positions in mentha oil futures due to an uptick in demand from consuming industries at the spot market against limited supplies from key producing regions.
“Mentha oil still has an overall bearish trend but for the last few sessions, it has been showing some upward movement on account of short covering at lower levels,” said Romesh Tiwari, Head of Research, CapitalAim.
Higher plantation of mentha is making the prospects weaker for the commodity and until the July futures remains below Rs 1,220 level on a daily basis, one should go for sell at higher levels, Tiwari added.
Around 11:55 am, MCX Mentha oil was at Rs 1,210 per kg, up by Rs 12.30, or 1.03 per cent.
Technical charts are looking weak.
“Mentha oil July futures is still looking bearish on the daily charts, forming a small rising wedge pattern around lower levels. RSI, too, is looking weak on the daily chart which is now placed at 37.64 levels. Mentha oil July future has important resistance at Rs 1,220 and Rs 1,270 levels, whereas it has support at Rs 1,140 and Rs 1,105 levels below Rs 1,170,” said Tiwari.