Mentha Oil market rises on short covering, open interest drops 3.73%

Mentha oil settled up 1.55% at 877.1 due to firming trend at the spot market on pickup in demand against restricted supplies from Chandausi in Uttar Pradesh. Further, expectations of lower production due to lower plantings of the aromatic herb on falling prices in the last two years too added support to mentha oil prices. Mentha oil production in India is likely to decline by 20% due to lower plantings of the aromatic herb on falling prices in the last two years, too led to the rise in mentha oil prices. 
Technically market is under short covering as market has witnessed drop in open interest by -3.73% to settled at 10703 while prices up 13.4 rupee, now Mentha oil is getting support at 865.3 and below same could see a test of 853.5 level, and resistance is now likely to be seen at 884.2, a move above could see prices testing 891.3.
Trading Ideas: 
--Mentha oil trading range for the day is 853.5-891.3.
--Mentha oil spot at Sambhal closed at 1014.30 per 1kg. Spot prices is remain unchangeby Rs.0.00/-.
--Mentha oil prices gained due to firming trend at the spot market on pickup in demand against restricted supplies from Chandausi in Uttar Pradesh.
--Further, expectations of lower production due to lower plantings of the aromatic herb on falling prices in the last two years too added support.
--At Sambhal market sources reported arrivals at 100 Drums(1-drum=180kg), lower by 25 Drums(1-drum=180kg) from previous trading day.

Get real time advice for Free Stock Tips , Free CommodityTips , Equity TradingTips , Stock Market Tips , Free Share Market Tips , share market Live Calls  and all market updates. 

For 2 Days Free Trial , please  visit our site http://www.capitalstars.com/free-trial

Call at 0731-6790000, 6669900.