Technically Mentha Oil market is under fresh buying as market has witnessed gain in open interest by 4.67% to settled at 112 while prices up 5.1 rupees.
Now MCX Mentha Oil is getting support at 943.3 and below same could see a test of 938.4 levels, and resistance is now likely to be seen at 951.5, a move above could see prices testing 954.8.
Mentha Oil yesterday settled up by 0.54% at 948.2 as demand from cosmetics and toiletries sector will remain weak in India, as concerns are high in India as we are now in second place with the second-largest number of confirmed cases in the world, 4,204,613.
The rise in cases comes as the government continues to lift restrictions to try to promote an economy that lost millions of jobs when the virus hit in March.
The sentiments remain weak for Mentha oil prices as selling pressure seen after GlobalData data revealed that UK cosmetics and toiletries sector will see a €1. 8bn (£1.7bn) value decline in 2020, after a tough year, largely determined by the ongoing coronavirus (COVID-19) crisis. But growth will come back in 2021 with the right investments.
Downside may be restricted as support can be seen after FAFAI has pointed out that as people across the world are becoming more conscious about the products they consume in the wake of the pandemic Covid-19, FAFAI has taken up this step to ensure they only use ingredients that are considered safe in their products for domestic consumption as well as for exports.
New arrivals are likely to pick up. Arrivals are likely to touch 100 drums per day. During the peak arrival season, 400-500 drums will collectively arrive daily in the markets of Chandausi, Sambhal and Barabanki in Uttar Pradesh.
--Mentha Oil trading range for the day is 938.4-954.8.
--In Sambhal spot market, Mentha oil gained by 3.2 Rupees to end at 1079.1 Rupees per 360 kgs.
--Mentha Oil gained after prices dropped as demand from cosmetics and toiletries sector will remain weak in India, as concerns are high in India.
--Pressure seen after GlobalData data revealed that UK cosmetics and toiletries sector will see a €1. 8bn (£1.7bn) value decline in 2020.
--Unlock down will support demand for industry as Mentha oil is most used in pharma, cosmetics, FMCG sector.
Courtesy: Kedia Commodities