Apr 08, 2013, 12.51 PM | Source: CNBC-TV18
In an interview to CNBC-TV18, Kishore Narne, Associate Director, Head-Commodity & Currency at Motilal Oswal shared his outlook on gold and crude.
Kishore Narne (more)
Associate Director, Motilal Oswal | Capital Expertise: Commodities
Below is the verbatim transcript of Narne's interview with CNBC-TV18.
Q: How do you see gold moving, internationally there has been a bit of a bounce overnight?
A: We are still seeing the spillover effect of weekend job report. We are looking at a pullback in India towards Rs 29,800-29,850 per 10gm. However, I would prefer to go short at higher levels rather than buying at these levels. Therefore, we would suggest going short at Rs 29,850-29,900 per 10gm levels with stop losses above Rs 30,000 per 10gm in domestic market for the June contract. One can look at targets close to Rs 29,600 per 10gm in couple of sessions.
Q: Do you see more downside in crude?
A: Any rally towards Rs 5,150 per barrel should be used as selling opportunity in domestic market as well. The kind of macroeconomic deterioration and the weakness in the global equity markets should prevent any major rally in crude at this point of time.
On supply side, there is ample supply from the Middle East as well as the cushing inventories continues to rise. Therefore, the pressure on supply side will continue to be there. So, any rally towards USD 94-94.5 per barrel should be used as selling opportunity and stop losses should be around Rs 5,200 per barrel and Rs 5050-5,000 per barrel in domestic market could be targets on the lower side.