Ashok Mittal, CEO of Emkay Commodities spoke to CNBC-TV18 about his views on the commodity space.
Below is a verbatim trascript. Also watch the accompanying video Q: Crude has gone up quite a bit internationally. Are you staying long in the local market? A: Crude has been moving up, as per our expectation. The overall trend will remain bullish. But since it is looking like it is overbought, we expect there maybe a correction of about USD 1. So, buy around USD 92.50. Another USD 1 can be kept as a stop loss. We expect the prices to touch somewhere between USD 95-96. So, the advice is buying on dips. Similarly on Indian markets, rupee also has slipped. This fall in rupee has led to an impact on the MCX prices. We believe rupee should not fall too much. Once rupee start depreciating once again, prices on MCX should go up. We expect a downside of USD 1 and upside of USD 2-2.50. Q: The dollar-rupee has come down to nearly 55. How would you be telling your clients to approach currency futures now? A: On August contract we expect 55.20, just below 55 should be the support levels where buying level is good. Then we expect going back. Yesterday we saw going to 55.55. So, we expect 40-50 paise upside movement from that level. So, we are advising buying on dips. Q: You are bullish on base metals like copper? A: Looking at the expectation from Chinese data, we expect base metal pack to remain bullish. So, copper three month LME forward should go to USD 7,700-7,800 per tonne. In rupee market Rs 415 per kilogram level where we are advising to buy keeping Rs 2-3 stop loss and on the higher side we are expecting Rs 418-420 per kilogram as the target. Q: What about bullion? A: Bullion has been range bound and it is not giving a clear direction. However, having a view on rupee, we expect it to depreciate. Some kind of upside momentum has been gradually happening on gold and silver both. So, gold is good to buy somewhere around USD 1,610 per ounce. In rupee terms Rs 29,850 per 10 grams. We expect to go to USD 1,635-1,640 per ounce. We are not expecting much below USD 1,600 per ounce. Rs 29,850 on MCX us a buying level keeping a stop loss of about USD 10 i.e. about Rs 100-150. Upside target of is Rs 30,100 i.e. somewhere around USD 1,635-1,640Discover 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!
