Naveen Mathur of Angel Broking tells CNBC-TV18 that during this festive season, gold is a great play. "For Mahurat trading where gold prices are at around Rs 27,500 levels or so, we would recommend a buy on gold at around Rs 27,450, with a stop loss around Rs 27,300."
Bullish on the yellow metal, his six month call is at around Rs 29,000-30,000 levels.
Below is an edited transcript. Watch the accompanying video for more.
Q: What's the trading call today for gold?
A: Gold has given very great returns because of the other asset classes not performing too well from last Diwali till now. Going forward, the strategy still remains to be bullish on gold as of now. For Mahurat trading where gold prices are at around Rs 27,500 levels or so, we would recommend a buy on gold at around Rs 27,450, with a stop loss around Rs 27,300. We would also recommend a target of around Rs 27,700-27,750 levels or so for gold today.
Q: Until next Diwali, what kind of an investment opinion would you advocate now?
A: Going forward, we are bullish and definitely would recommend an investor to invest in gold. So 10-15% of the corpus may be invested with gold as of date. We see around say USD 1,900 levels to consolidate if the market scenario doesn't worsen too much. But if it worsens to a large extent where the sovereign debt problem does not peter out well, I think we can see even USD 2,000 breaking down. In rupee terms, we are holding at around Rs 29,000-30,000 levels say for next six months or so.
