Buy gold at Rs 29,500/10gm: IIFL

In an interview to CNBC-TV18, Tarang Bhanushali of IIFL recommends buying gold around Rs 29,500 per 10gm. "Keep a target of Rs 29,700 per 10gm and a stop loss of Rs 29,380 per 10gm", he adds. He also suggests selling copper on every bounce.

Below is a verbatim transcript. Q: Gold and silver seems to have opened quite weak, how are you guys trading those two? A: Intraday we expect a bounce in the precious metals pack, gold around USD 1,596 per ounce in the international market has a good support. Yesterday, also it went below it but bounced back sharply. We believe that it would remain around USD 1,590-1,615 per ounce band in the near-term at the moment. For intraday, we are net buyers in gold. On the MCX, one can buy around Rs 29,500 per 10gm keeping a target of Rs 29,700 per 10gm and a stop loss at Rs 29,380 per 10gm. Q: Any trades on the base metals that you are recommending today? A: We believe that the trend on base metals continues to be on the downside. We are net sellers on every bounce. So, in copper a bounce to around Rs 419-420 per kilogram levels is a good opportunity to short. On the MCX, one can short copper around Rs 419 per kilogram levels keeping a target of Rs 413 per kilogram and a stop loss of Rs 422 per kilogram.