'Global sentiments to push commodity mkt to trade higher'

Naveen Mathur of Angel Broking spoke to CNBC-TV18 about his views on the commodity market.

Also Read: Emkay Commodity expects rally in Gold Below is the verbatim transcript of Mathur’s interview on CNBC-TV18 Q: Gold has hit record high in rupee terms. What is your strategy on gold? A: Gold has a positive momentum building up because of the firm notes on which the equity markets are trading across the globe as the European finance minister took out positive steps for Greece extension of loan payment. At the same time they are making payment of around 34 billion euros by December to Greece. Overall, the sentiments have become positive and that is why the markets are on the upside. Dollar is getting weaken therefore, the euro is gaining strength. Rupee is also appreciating. Overall, in Indian markets because of the upbeat sentiments we feel that the markets would trade on the upside for gold as they have opened. Therefore, the strategy would be to buy gold at around Rs 32,250-32,300 per 10 gram levels. We recommend a stop loss for this trade at Rs 32,140 per 10 grams for targets of Rs 32,480-32,500 per 10 grams on the higher side. However, the appreciation in rupee would cap the sharp gains on the MCX. Q: What is your strategy on crude? A: Crude is pretty much range bound. We had the cease fire, we are worried about the supplies, we had the economic situation dwindling across the western world. Overall, there will be  a range bound movement but intraday we still expects the markets to trade on an upbeat note. Therefore we recommended buying MCX crude December contract, which is trading around Rs 4,900 per barrel, to be bought at around Rs 4,870-4,880 per barrel levels. Place a stop loss for this trade at around Rs 4,840 per barrel for targets of Rs 4,940-4,945 on the upside. Q: Copper as well started trade in the green. Do you think there is more upside in copper? A: If you see LME prices, they are hovering around 7700 to 7800 levels. In Indian markets too, we are seeing the uptrend because of the positive sentiments in the market and the weakness in the dollar index. But as I said, the appreciation in the Indian rupee would hold the sharp gains on the MCX. We expect the prices to move to an extent of Rs 436 per kilogram. We recommended buying copper at around Rs 431-432 per kilogram levels. It is trading right now at around Rs 433-434 per kilogram.