Commodity prices may fall on rising rupee: Angel Broking

"In Indian market, we would recommend selling the MCX crude contract for the month of October at around Rs 4,870-4,880 per barrel levels," he told CNBC-TV18 in an interview.

Also Read: MCX GOLD Feb'13 contract trades lower

"We expect the markets on the silver to be upside. Hence, we recommend buying silver at around Rs 59,400-59,500 per kilogram," he further added.

Below is the verbatim transcript of the interview

Q: Crude is seeing unrelenting strength in global markets. What would be a good strategy to play it in the local market?

A: We feel that the markets, because of rupee appreciation today, would trend on the downside. Hence, in Indian markets, we would recommend selling the MCX crude contract for the month of October at around Rs 4,870-4,880 per barrel levels. Stop loss of this trade should be at around Rs 4,920 per barrel. We expect targets on the downside at around Rs 4,810 per barrel.

Global markets, upbeat sentiments and the weakness and dollar would continue to put the upside trend for the crude oil prices. Therefore, the prices should hover around USD 91-92 per barrel. On the downside, we may see around USD 89 per barrel on a medium-term but the upside will still go to an extent of USD 95 per barrel. So, crude will trade between USD 89 to USD 95 per barrel in the international markets.

Q: Silver started weak this morning. Do you see substantial downside there?

A: The rupee appreciation as I said would be a key factor to watch out for today. But I do not see much of an appreciation coming out although the upbeat global sentiments have come up positive for the markets. Also, the retail sales data which has come up from the US has been positive. So, overall the base metal pack is trading upside.

Therefore, we expect the markets on the silver to be upside. Hence, we recommend buying silver at around Rs 59,400-59,500 per kilogram. Stop loss for this trade should be put in at around Rs 59,100 per kilogram and targets on the upside at around Rs 60,200 per kilogram for MCX December contact.

Q: What about gold?

A: Sell gold, MCX on December Rs 31,050 per 10 grams to around Rs 31,070 per 10 grams levels. Place a stop loss around Rs 31,170 per 10 grams for targets of Rs 30,850 per 10 grams.