Rising rupee taking commodity prices down: Naveen Mathur

Mathur said, "The only factor in Indian market to be seen is the rupee appreciation which is taking the commodity prices on the downside in the Indian markets."

Below is the edited transcript of the interview

Q: What is the mood in the commodity market now after the kind of huge change that you have seen in equity and currencies over the last 72 hours?

A: The mood is pretty much positive. The only factor in Indian market to be seen is the rupee appreciation which is taking the commodity prices on the downside in the Indian markets.

But otherwise if you see overall globally, the markets are positive. They are holding back on the highs which they have created on the back of the various announcements which we saw in last two weeks or so by central bankers and by the German constitutional court.

So, overall the market sentiments are pretty bullish in terms of - how the markets would pan out the positivity coming along. So, therefore commodities demand may come up because of this mood and the sentiments building up.

Overall it’s positive, but the rupee factor, as I said in Indian markets is a key to watch out because that is where the prices on commodities in India would slightly be down inspite the dollar values of commodities holding up in the international markets.

Q: What is your strategy on gold from hereon?

A: We feel that the markets technically look on the upside. Therefore, as I said, the rupee appreciation would be a key factor to watch out. But technically for the day, we would recommend buying on the dips at around Rs 31,780 per 10 grams.

Stop loss for this trade should be put in at around Rs 31,600 per 10 grams and we are expecting targets in the range of Rs 31,980 per 10 grams to Rs 32,000 per 10 grams by the end of the day.