Bearish on bullion, crude and copper: Angel Commodity

Naveen Mathur of Angel Commodity Broking foresees gold price heading lower, so he suggests selling gold. “Sell MCX gold October contract at Rs 29,800 per 10gm to Rs 29,850 per 10 gm with a stop loss at Rs 30,000 per 10gm and a target of Rs 29,450 per 10gm on the downside,” he told CNBC-TV18 in an interview.

He is bearish on crude, silver and copper as well and recommends selling them. Below is the edited transcript of Naveen Mathur's interview with CNBC-TV18 Q: Gold has seen further downtick. What sort of strategy would you be recommending in the domestic market now? A: The markets are trending downwards and we will go along with the trend. The strategy therefore would be to remain to be on the sell side. The Indian rupee depreciation would hold a key. It may cap some kind of a sharp downside in Indian market, but overall we are expecting the trend to continue towards a declining trajectory. Therefore our strategy would be to sell gold contract on the MCX for the month of October in a range of around Rs 29,800 per 10gm to Rs 29,850 per 10 gm. We recommend a stop loss around Rs 30,000 per 10gm and target on the downside in level of around Rs 29,450 per 10gm. It is trading around Rs 29,650 per 10gm right now. Q: How would you trade crude? A: Crude is also on the downside. Output increment from Libya and diplomatic tensions across Syria have pitted out. So, overall with the trend remaining bearish on the market, we continue to recommend the sell strategy even in Indian markets, but keep an eye on rupee depreciation. Our strategy would be to sell crude oil contract also for intraday for October at around Rs 6,650 per barrel, stop loss at Rs 6,720 per barrel and target at Rs 6,540 per barrel. Q: Besides gold and crude, what would you be recommending today? A: We are selling on silver and copper contract too. If somebody wants to trade either of the two commodities also, we would recommend selling the silver contract on the MCX in the month of December on Rs 48,800 per kg with a target of approximately Rs 47,800 per kg and stop loss recommended for this trade would be around Rs 49,600 per kg. Similarly for copper, will it go down in terms of selling at around Rs 461-462 per kg on the MCX with a stop loss recommended at around Rs 466 per kg and the target in the range of Rs 454-455 per kg. Disclosure: Angel Commodity Broking does trade on the proprietary desk but its our clients may have some positions in these commodities.