Crude slips: Here's how you can trade the commodity now

Excerpts from Bazaar on CNBC-TV18 Watch the full show »

Crude prices tumbled 6% after the International Energy Agency (IEA) announced it would inject 60 million barrels of government-held stocks in the global market, immediately increasing world supply by some 2.5% for the next month. The IEA says the intervention is to aid the struggling global economy.

According to T Gnansekhar of Commtrendz, any support near Rs 4150 to 4160 a barrel levels could take prices higher towards Rs 4,250 or 4,265 a barrel. "I think one can look to buy around these levels of Rs 4150-4165 a barrel with a stop loss of Rs 4,120 a barrel and a possible target of Rs 4,260 a barrel," he said.

Kishore Narne of Anand Rathi Commodities suggested selling crude at Rs 4300-4350 levels, with a stop loss of Rs 4,380 a barrel. "One can look for targets of Rs 4,050-4,100 on MCX and selling at Rs 4300 a barrel kind of level."

Kunal Shah of Nirmal Bang Commodities said, "We have seen a very bad set of economic data coming from US and we feel that after a decision by the DOE to come up with a 30 million barrel of oil to take out from strategic petroleum reserves, oil prices are going to decline further. We recommend to go short in oil at Rs 4140 with a stop loss of Rs 4185." He expects oil prices to drift lower and touch Rs 4025 and Rs 4023.

Meanwhile, NS Ramaswamy of Ventura Commodities feels nickel out of the base metals pack continues to show weakness. "This is on support of supply, which is on the higher side compared to demand by almost close to 1,60,000 tonne.

He said the strategy would be clear-cut sell, in the range of Rs 998-990 with a target of Rs 972-961. "We need to play with stop loss of Rs 1010," he said.