Angel says buy crude at Rs 5160-5170/bbl; avoid gold

Crude has seen some big movement overnight on concerns about demand growth. Currently, the crude prices are trading around Rs 5,210 per barrel.

Reena Walia, senior research analyst of international commodities at Angel Broking suggested a buy on Multi Commodity Exchange (MCX) crude oil November contract around Rs 5,160 to Rs 5,170 per barrel levels. She said, "One can apply a stop loss of Rs 5,120 per barrel levels and a target around Rs 5,250 per barrels levels for the day," she suggested.
Demand for gold rose by 6% to a 1-1/4 year high in the third quarter of 2011, driven by central bank purchases and European demand for bullion against the backdrop of the escalating euro crisis on Thursday.
Currently, the Indian gold market prices are trading below Rs 29,000 per 10 gram levels. However, Angel Broking is a little bearish on gold.
The rupee appreciated slightly, so the prices will trade lower for the day, she pointed out. "We expect prices to test Rs 28,825 per 10 gram levels," she added.
She advised selling the MCX gold December contracts around Rs 28,960 per 10 gram levels with a stop loss of Rs 29,085 per 10 gram. Moreover, she indicated that the prices are expected to trade below Rs 29,000 per 10 gm today.