Silver had a fairly steep correction but today there is a bounce back in both gold and silver. Priti Gupta, director, Anand Rathi Commodities in an intervieew to CNBC-TV18 suggests buying silver at Rs 57,000/kg. Gupta says after yesterday's steep fall, there will be some consolidation in the price. "We must remember that we are at the beginning of the holiday session. Volumes are very thin. So, any news to that effect will always result in very high volatility," she adds.
On the other very important commodity- crude, Gupta suggests a sell for about Rs 40-60 at Rs 4,960 per bbl to a target of about Rs 4,920 per bbl or Rs 4,900 per bbl.
Below is the edited transcript of Gupta's interview to CNBC-TV18.
Q: How are you trading silver after the kind of volatility we have seen over the last few sessions?
A: Yesterday was a steep fall in silver. We will see a bit of consolidation from here. However, we must remember that we are at the beginning of the holiday session. Volumes are very thin. So, any news to that effect will always result in very high volatility. We have a buy call today in silver at Rs 57,000-57,200 per kg with a target of Rs 57,800 per kg or Rs 58,000 per kg.
This is a slight consolidation, correction after yesterday’s steep fall. However, going forward, I still see a certain rippling effect. We can see silver come down to levels of Rs 55,000-56,000 per kg and that to my mind, is something that traders need to be wary of.
Q: How would you trade crude? Any after effects from the correction in equity markets globally?
A: We have always reiterated the fact that the supply situation in crude is extremely good. We had some positive numbers coming in from the US, but as of now, from our end technically crude intraday looks like a sell. So, we have suggested a sell for about Rs 40-60 at Rs 4,960 per bbl to a target of about Rs 4,920 per bbl or Rs 4,900 per bbl.