Ideal buying for crude at $66/bbl: Anand Rathi Comm

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Kishore Narne, Vice President, Anand Rathi Commodities sees ideal buying for crude at USD 66 per barrel. He sees bit of uncertainty prevailing in both gold and silver right now. According to him, the ideal range that gold should be trading in should be around USD 780 per ounce to around USD 730 per ounce on the lower side. "It will continue to trade in the same range. If we take Gold December MCX as a benchmark probably, one should see USD 11,300-11,250 per 10 gm on the lower side, and Rs 11,850 per 10 gm on the higher side as the trading range. The trading range for silver should be somewhere around Rs 16,300-17,300 per kg."

 

Here is a verbatim transcript of the exclusive interview with Kishore Narne on CNBC-TV18. Also watch the accompanying video.

 

Q: How do you see crude opening when the US market opens trade?

 

A: I think it is a bit oversold right now. We might see a bit of buying coming in crude, probably around USD 66 per barrel. It may go up to USD 68-69 per barrel. So, USD 66 per barrel should be an ideal buying level for crude.

 

Q: You don't see it breaching USD 70 per barrel then?

 

A: Not so soon. The problems that we are seeing right now are not yet behind us. So, we will see some more consolidation or some lacklustre trading in crude.

 

Q: Gold saw a phenomenal run yesterday. How would you trade it?

 

A: To be very frank, a bit of uncertainty prevails in both gold and silver right now. It is in a small, narrow range. It has been consolidating since yesterday evening, and even today morning. It has been trading in a very narrow range.

 

The ideal range that it should be trading in should be around USD 780 per ounce to around USD 730 per ounce on the lower side. So, it will continue to trade in the same range. If somebody has to sell, it should be an ideal sell around USD 780 per ounce, or if somebody has to buy it has to be around USD 725-730. Even in India it should trade in a very narrow range.

 

Q: What would that be considering that the rupee also has been very volatile?

 

A: If we take Gold December MCX as a benchmark probably, one should see USD 11,300-11,250 per 10 gm on the lower side, and Rs 11,850 per 10 gm on the higher side as the trading range.

 

The trading range for silver should be somewhere around Rs 16,300-17,300 per kg.

 

Q: How would you trade copper then because base metal prices also have seen a lot of volatility?

 

A: After this short-term pullback in most of the equity markets across the world, we are seeing selling once again coming in across the board. In Europe we are seeing negative figures, and even the US futures are trading in negative zone. I think that is impacting sentiment in the base metal counters.

 

I don't think copper would breach USD 3,780 per tonne level for the short-term. That should probably be a decent floor for copper. I would suggest buying around Rs 197-196 per kg. It is right now trading in that range. The ideal target on copper would be Rs 203-204 per kg.

 

On LME, it should be trading around USD 3,800 to around USD 4,250 per tonne.