Avoid gold at current levels, says Sushil Finance

Giving his call on gold, Shah tells CNBC-TV18, medium-term gold is not yet very bullish at current levels. Investors should stay away if they are looking at a long-term opportunity. Meanwhile, one could buy silver as far as it is trading above the Rs 52,500 per kg or Rs 52,000 per kg on an overall basis.

Below is the edited transcript of the interview on CNBC-TV18.

Q: What are you telling your clients to do on crude now after the move up over the last few days?

A: I think crude oil has structurally gone into a slightly positive territory but for a very short-term. I think swing traders or weekly traders can definitely be on the long side on this commodity as long it is trading above Rs 4800. So we suggest traders to be long and hold longs with protecting stop loss and close below Rs 4800 and looking at a target price of Rs 5000.

Q: You are going with caution on the base metals; would you go with something like copper today?

A: On intraday basis, copper has given a slight negative close yesterday. I think this commodity on global uncertainties as well as a Chinese slowdown if that comes in place would definitely be a slightly negative territory. I suggest traders to go short on this commodity for a target price of Rs 418 and put a stop loss above Rs 425.

Q: What is your view on gold?

A: On intraday basis, as long as gold is trading above Rs 29,200 per 10 gm, it is definitely on a very strong support band. I would suggest traders to buy this commodity for intraday at current levels or probably even dips to Rs 29,230 per 10 gm and put a stop loss below Rs 29,180 per 10 gm. On the higher side, Rs 29,380 to 29,450 per 10 gm can be the target. But structurally, I don’t think in a medium-term gold is yet very bullish at current levels. One should remain away if one is looking at a long-term opportunity.

Q: Would you buy silver?

A: One could buy silver as far as it is trading above the Rs 52,500 per kg or Rs 52,000 per kg on an overall basis. One can look at trading and buying this commodity near Rs 52,500 per kg with stop loss below Rs 52,000 per kg, and on the higher side, looking at a target of Rs 53,850 per kg.