Market bullish on crude, not on gold: Angel Broking

Below is a verbatim transcript. Also watch the accompanying video.

Q: Crude has internationally gone up to almost USD 112 per barrel. What are you doing in the local market?

A: We feel the markets are still bullish on the crude oil prices. Overall sentiments have become quite positive if you see for the last couple of days.

Therefore there is buoyancy on the upside for crude oil. We recommend buying the crude oil in the MCX for the month of August. The buy position can be initiated at around Rs 5,100-5,110 per barrel.

The stop loss for this trade should be put at around Rs 5,050 per barrel. We are expecting targets by the end of the day at around Rs 5,190-5,200 per barrel levels.

Q: How are you approaching bullion?

A: Fundamentally it is quite sideways kind of a movement to a little uppish tone. But technically we recommend selling for the day. The sell position can be initiated at around Rs 29,850 per 10 grams.

Stop loss for this trade can be put in at around Rs 29,960 per 10 grams. We are expecting targets on the downside during the day at around Rs 29,650 per 10 grams. Fundamentally, there is mild bullishness. But technically it is a sell call for the day.

Q: Have you been keeping an eye on the volatility in the sugar market for the last couple of days?

A: The sugar markets have been quite volatile. We have seen prices on the upside. It is predominantly because of deficient monsoon that we are seeing which will result into the lower yield on the sugarcane.

Therefore, the prices of sugar have taken an upside. They are trading at around Rs 3,440 per tonne. Today you are seeing a little bit on the downtrend. I think it’s going to stabilise in the range of around Rs 3,200 per tonne. But deficient monsoon particularly in UP and Maharashtra is keeping the sugar prices on the upside.

It’s going to consolidate at these levels. I don’t see much of downside pressure on prices.