In an interview to CNBC-TV18, Tarang Bhanushali of IIFL said NYMEX crude prices have found a strong support at USD 92-92.50 per barrel levels. Bhanushali believes it would remain as a strong support and advises to go short only after a break below that level.
He further added, "Till crude oil stays above USD 92 per barrel levels, we would remain net buyers in it". Below is a verbatim transcript of the interview: Q: What you are telling your clients to do on crude now? A: If you look at the New York Mercantile Exchange (NYMEX) crude oil, their prices have not come down. The spread between Brent and NYMEX has been reduced over the last one week, which led to the fall in the Brent prices. However, NYMEX crude prices have found a strong support at USD 92-92.5 per barrel levels. We believe it would remain as a strong support and only after a break below that level, one should go short. Till it stays above USD 92 per barrel levels, we would remain net buyers in crude oil. On the MCX, one can buy crude around current levels of Rs 5,080 per barrel keeping a target of Rs 50-60 per barrel for an intraday basis. Q: Are you still seeing a lot of pressure on industrial metals and any trading strategy on those bases? A: We have seen people selling industrial metals on every bounce. We believe that this would continue till we see some positive triggers from China or from US. On copper, we believe that around Rs 410-411 per kilogram levels one can go short keeping a target of Rs 404 per kilogram on the MCX. We believe that we would see some bounce for the other base metals too, in today's trading sessions. That should be used as a selling opportunity.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
