Apr 11, 2012, 03.00 PM | Source: CNBC-TV18
Kishore Narne of Anand Rathi Commodities in an interview to CNBC-TV18 gave reading and outlook on various metals in the commodity space.
Kishore Narne (more)
Associate Director, Motilal Oswal | Capital Expertise: Commodities
"Probably at Rs 54,000 is what we are looking for in India and on the upper side trajectory it will be Rs 60,000, told CNBC-TV18.
Meanwhile he expects gold to be in the range of Rs 27,000-28,500 per 10gms for the next couple of months.
Below is the edited transcript of the interview. Also watch the accompanying video.
Q: At current levels of crude is there still a shorting opportunity?
A: Not really because we are seeing USD 101-102 for WTI is a very good support. We are just below USD 120 on Brent because more or less the issues are still there. The demand is still very much picking up because the inventory filling activity in Organisation for Economic Co-operation and Development (OECD) countries is happening. It may not be consumption demand, but inventory demand is still very high.
If there is a Strategic Petroleum Reserve (SPR) release then crude will be having a kneejerk reaction and it could fall towards USD 95 for WTI and USD 115 for Brent. If that doesn’t happen probably we will see the range of USD 100-104 for WTI.
Q: How exactly do you expect gold to move?
A: Gold has more or less pull and push factors because we are expecting liquidity enhancement in most all the central banks across the world especially developed world. At the same time increasing yields on the treasury notes of US is deteriorating the situation for gold.
Good performance of equities in US especially is also taking off some safe haven demand from gold. Overall it will be in the range of around USD 1,580 to USD 1,700 kind of range. In India Rs 27,000-28,500 per 10gms kind of range is possible for the next couple of months.
Q: What about silver?
A: Silver we are more bearish because silver will be underperforming gold. Probably at Rs 54,000 is what we are looking for in India and on the upper side trajectory it will be Rs 60,000. So this is what the entire 2012 looks like, Rs 54,000-60,000.
Q: Give us an immediate number for crude. How would you trade crude intraweek and for a positional trade end of contract?
A: I would like to sell it around Rs 5,250, 5,260 levels on MCX that would be around USD 102 on WTI and with a stop loss of Rs 5,310. I would look for target of Rs 5,180 that will be USD 100.