Naveen Mathur of Angel Commodities feels USD 40 per barrel is a very strong support for crude.
Here is a verbatim transcript of the exclusive interview with Naveen Mathur on CNBC-TV18. Also watch the accompanying video.
Q: The OPEC meeting on March 15 is important for crude. How are the events expected to impact crude prices?
A: I think the prices on the intraday position would be on the buy side only. But all said and done, the fundamentals point towards it being rangebound. The OPEC meeting will definitely play a crucial role although the cut that they have announced in the last couple of times have not really given a boost to crude oil prices. It is basically more the demand side that is creating it.
Today’s news of another 1 million barrel kind of a short fall for 2009 will create some jitters in the market. But overall we have seen for an intraday position if one wants to trade, the range would be around USD 42-44 per barrel levels wherein crude prices will move over and across.
A ‘buy’ on MCX April contract can be done at around Rs 2,245-2,260 per barrel levels with a stoploss of Rs 2,190 per barrel and a target can be seen at Rs 2,340-2,390 per barrel levels.
Q: Do you feel USD 40 per barrel is a strong support for crude? Would you buy at all dips around those levels?
A: It is consolidating around USD 37-40 per barrel levels. USD 40 is a very strong support now for crude in the international markets. It is quoting around USD 42.60 per barrel right now. I feel USD 46 per barrel is the next resistance although it has touched USD 48 per barrel levels two days ago. But USD 46 per barrel is a strong resistance. It will hover around USD 40-46 per barrel levels.
Q: We have seen a lot of volatile moves happen in gold as well. Do you feel there is strong buying happening around USD 900 per ounce?
A: Although it is quoting around USD 912-913 per ounce in the international markets right now, I feel the market is in a sort of consolidation mood for gold prices. It should clearly close above USD 905 per ounce. We see it between USD 904 per ounce to USD 927 per ounce and USD 890 per ounce on the lower side. The euro is appreciating; the Dow Jones is really kicking back slowly. We have seen some movements come up on the Dow Jones yesterday.
Profit booking has taken shape from the highest level of Rs 16,200 per 10 gm in the Indian markets and it is now quoting at around Rs 15,150 per 10 gm. So profit booking has already happened and maybe happening, which has not impacted the market strongly. But there is still a sell recommendation. There are no strong triggers for a ‘buy’ recommendation.
The MCX April contract for gold can be sold at higher levels around Rs 15,230-15,250 per 10 gm with a stoploss of Rs 15,380 per 10 gm and a target can be seen at Rs 15,000 per 10 gm and Rs 14,950 per 10 gm levels.
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