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Mentha oil futures fall on profit booking, lower spot demand

While fundamentals look weak, technical charts are also showing a bearish trend.

ETMarkets.com|
May 15, 2019, 12.24 PM IST
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"Mentha has seen profit booking from higher levels at Rs 1,390-1,380," said Mustafa Nadeem, CEO, Epic Research.
NEW DELHI: Mentha oil prices fell in futures trade on Wednesday due to profit booking amid a slump in demand by consuming industries at the spot market.

Speculators trimmed positions in Mentha futures triggered by lower demand from consuming industries at the spot market and adequate stocks on higher supplies from major producing regions.

Around 11:20 am, MCX Mentha oil was at Rs 1366.40 per kg, down Rs 13.60, or 0.99 per cent.

"Mentha has seen profit booking from higher levels at Rs 1,390-1,380. Prices are seeing distribution at higher levels on concerns over muted demand and higher production estimates," said Mustafa Nadeem, CEO, Epic Research.

While fundamentals look weak, technical charts are also showing a bearish trend.

"Prices are below their long term moving averages and there is also a negative crossover. Traders and speculators are further using advances to create bearish positions. We believe the short term movement is expected to remain bearish and in the range of Rs 1,390 to Rs 1,345. A break below the support would result in bearish trend continuation," Nadeem added.

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