NS Ramaswamy, Head Commodities of Ventura Securities is bearish on nickel, zinc and copper. He advises investors to sell these commodities.
Below is a verbatim transcript of the interview. Also watch the video.
Q: Do you concur that there would be some more selling pressure on base metals and what is your exact strategy on nickel?
A: Nickel should be a sell at the moment although there is a positive outlook for 2010 altogether but on a short-term perspective there is some pressure and corrections that is happening in base metals complex and nickel should be a sell at the current moment and we should be expecting a price movement that should be touching to around Rs 829 or Rs 808 levels and buying trend would change only on surpassing it on Rs 876 onwards. So that is the trend right now in nickel.
In copper, probably we are expecting further correction levels to Rs 335 and this correction is on the fundamental factor that we are talking about the Dow Jones commodity weight in the metals. So, the expected weight is likely to come down to copper and zinc to around 7.6 as compared to 11.1, which it was at.
So this could be big way come around with a selling pressure on copper and zinc. So that is a temporary short-term outlook, a bearish trend is expected.
NS Ramaswamy, Head Commodities of Ventura Securities is bearish on nickel, zinc and copper. He advises investors to sell these commodities.
