Buy gold, sell silver & crude: Anand Rathi

Also Read: Crude Oil prices may test Rs 4830: Nirmal Bang

Below is the verbatim transcript of the interview

Q: How are you approaching crude after the correction in the global market over the last few days?

A: Some more weakness remains here. We saw a sell off yesterday. We can see some kind of a pullback towards around Rs 4,850 per barrel kind of level where I would like to go short in crude with stop losses of Rs 4,920 per barrel for targets close to Rs 4,700-4,720 per barrel possible.

Q: What about bullion? We saw some weakness in both Gold and silver this morning. How do you expect the day to pan out?

A: Both are trading in a narrow band. In case of silver, probably Rs 59,000-60,500 per kilogram kind of range and for gold Rs 30,800 per 10 grams to around Rs 31,200-31,400 per 10 grams kind of range. So, if the lower end of the range comes first, I would like to buy gold around Rs 30,900 per 10 grams kind of levels with Rs 30,800 per 10 grams as a stop loss.

But if the prices go up towards Rs 60,300-60,200 per kilogram levels, I would go short on silver. But, if you consider both, the weaker metal will be silver and the stronger will be gold. So, I would go with buy gold and sell silver kind of strategy.

Q: What about copper?

A: Copper is significantly weaker at this point of time. Probably, a slight rally or intraday pull back towards Rs 430 per kilogram could be seen as a selling opportunity with potential targets close to around Rs 424-422 per kilogram on the lower side.