Commodity Bets: How to trade nickel, silver & crude

Renisha Chainani of Edelweiss suggests selling nickel where inventories are continuously rising and are at record higher levels. "At London Metal Exchange (LME) I expect prices to trade below USD 14,000 per tonne and at MCX one could initiate sell positions around Rs 822-823 per kilogram with stop loss of Rs 833 per kilogram and targets would be Rs 800 per kilogram on the lower side," Chainani adds.

Sugandha Sachdeva of Religare Commodities advises buying natural gas at levels around Rs 218-218.5 per kilogram, keeping a stop loss in place at Rs 214.5 per kilogram; prices are likely to edge higher towards level of Rs 222 per kilogram in near term.  Sumeet Bagadia of Destimoney Commodities recommends selling silver. Bagadia says, "Rise in prices till Rs 43,700 per kilogram or Rs 43,800 per kilogram in MCX should be used as selling opportunity with a stop loss to be placed at Rs 44,500 per kilogram on higher side for initial target of Rs 43,000 per kilogram. If prices are able to break and give close below Rs 43,000 per kilogram then further selloff can be seen till Rs 42,500 per kilogram in next two-three days." Expect southward move in crude oil: Astromoneyguru Dharmesh Bhatia of Kotak Commodities advocates buying crude at Rs 5,600 per bbl maintaining stop loss of Rs 5,550 per bbl and hold long for a target of Rs 5,783 per bbl to Rs 5,800 per bbl or higher levels.