Naveen Mathur's tips to trade silver, crude

Also Read: Experts tips to trade crude, natural gas, nickel, copper

Below is the verbatim transcript of the interview

Q: How do you see crude moving after its correction in the global market?

A: Crude looks bearish over a period of time because of the deflationary concerns in the euro zone. But at the same time, if you see, the US economy and the Chinese economy is picking up the stream. So, I think the response would be muted for the crude oil. Therefore, a range bound trading would happen in the near-term.

But on a long-term basis we feel that the markets would trade at around USD 85 per barrel in international space to around USD 102 per barrel levels maximum on the upside over a long-term and over a long-term means six months and beyond. But intraday, because of the downside pressure, we recommend buying the crude oil contract on the lower prices technically.

Therefore, the recommendation for crude would be to buy November MCX contract for Rs 4,600-4,610 per barrel. We would recommend the stop loss for this trade at around Rs 4,560 per barrel for upside targets for the day at around Rs 4,690-4,700 per barrel levels.

Q: What about silver? How would you trade it after the big gap up this morning?

A: Silver has all the bullish tendencies for the intraday. But since the gap up has opened, a recommendation and buy call would continue because of the industrial metals coming out on the positive. At the same time, the Asian markets are a little firm today.

Therefore, technically, we recommend buying silver contract on MCX at around Rs 58,600-58,700 per kilogram levels. We would recommend stop loss for this trade at around Rs 58,400 per kilogram for targets on the upside at around Rs 59,200-59,400 per kilogram levels.