Mentha oil on slippery road: Sharekhan

Sharekhan's report on Mentha oil

MCX mentha oil December contract has retraced 61.8 percent of the fall from Rs 908 to Rs 840 and has started falling. For the last few trading sessions it has been correcting sharply and has also broken the previous swing’s low. The daily momentum indicators bear a negative crossover. It is trading below the 20-and the 40- daily moving average (DMA). We expect mentha oil to trade with a negative bias for the targets of Rs 806, which is the daily lower Bollinger Band, and Rs 780, which is the weekly lower Bollinger Band. The stoploss should be trailed to Rs 855, which is the 20-DMA and the 40-DMA.                           Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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