Naveen Mathur of Angel Broking spoke to CNBC-TV18 about his views on the commodity market.
Below is the verbatim transcript of Mathur’s interview on CNBC-TV18
Q: What do you think of the subdued run in bullion over last couple of days?
A: We expect subdued trend to continue today. We have seen the prices of gold touching USD 1,725-1,726 per ounce levels yesterday but then it came down to USD 1,713 per ounce because of the strength in the dollar index. The appreciation of rupee today also would play a bearish note to gold.
Therefore, we would recommend selling the gold contract on the MCX at around Rs 31,050-31,060 per 10 grams levels. We recommend a stop loss for this trade at around Rs 31,150 per 10 grams for targets of Rs 30,900-30,880 per 10 grams. Silver is also looking bearish. We recommend silver at around Rs 59,900-60,000 per kilogram levels with a stop loss at around Rs 60,300 per kilogram for targets of Rs 59,400-59,300 per kilogram levels.
Q: How are you trading crude now? Last night, despite the equity rally there was no strength in crude. Is it looking weakish?
A: Crude is in a territory of tussle between demand and supply. There was concern on the supply issues last week. So, the prices jumped up from around USD 84 per barrel levels to around USD 86 per barrel right now. But as I said earlier, the markets would trade pretty much sideways on a range bound note, between USD 84-85 per barrel levels to around USD 90 per barrel levels.
But still in Indian markets, we can buy the crude oil contract for the November at around Rs 4,650-4,660 per barrel levels. Place a stop loss for this trade at around Rs 4610 for targets of Rs 4,720-4,730 per barrel.