Crude may hit $95-96 a barrel in short term: Anand Rathi

Below is the edited transcript of the interview.

Q: Globally, crude has been incredibly strong in the last few days. What are you telling your clients to do in the local market?

A: Geopolitical tensions in the Middle East are the prime triggers for the rise in crude oil prices. Macro economy still continues to lag. In short-term we might see spikes towards USD 95-96 on WTI. In India, on MCX it would be close to 5250 levels. So we are suggesting to clients to buy on slight dips towards 5080 levels for August contract with a stop loss of below 4980 and look for targets close to 5200-5250.

Q: What is your view on gold?

A: I am not bullish on gold and I think right now gold is in a peculiar situation. The quantitative easing from the Fed has not been turning up, so the longs are getting little frustrated in the market and then you might see one last dip before any major rally in gold which could take it close to USD 1430-1450 areas. So,

I see a slight intraday rally of Rs 100-150. I expect the gold to sell close to Rs 29,300-29,350 levels and look for a target of Rs 29,100. But on a breakdown below Rs 29,100 you will see a major downfall of Rs 500-600.