Crude above Rs 6,550 on MCX good buy: Anand Rathi Comm

Kishore Narne,VP,  Anand Rathi Commodities set the near-term target for crude at USD 135 per barrel. He also sees the support for crude at USD 128 per barrel.

He added that if crude breaches Rs 6,550 on MCX, then it should be a good buy.

Excerpts from CNBC-TV18's exclusive interview with  Kishore Narne:

Q: What’s the call on crude?

A: We see some more bullishness in crude if it breaches Rs 5,650 per barrel levels. Unless and until it breaks above that there will be no significant upside. As we are in the start of the hurricane season, we do not suggest any short positions because the Hurricane Dolly is right now in the Gulf of Mexico, which is the key hub for imports of crude oil into US. So if it breaches Rs 6,550 on MCX, then it should be a good buy at these levels.

Q: What is your near-term target on crude?

A: The ideal target for the short-term should be Rs 6,650 per barrel in the MCX and USD 135 per barrel. 

Q: What kind of floor would crude build before it rises to that level?

A: USD 128 is a support for Nymex crude. If that is breached we may see some more liquidation happening on the fund side.       

Q: Are you advising fresh longs at current levels?

A: Yes, there is a lot of open interest building up. Last week there was a 7% increase in the fund long positions. Funds are going long and a lot of long positions are being created.