Naveen Mathur sees bull run in gold & silver

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

Also Read: Buy silver, aluminium; sell natural gas, lead: Experts Below is the verbatim transcript of Mathur’s interview on CNBC-TV18 Q: How do you see crude moving given the overnight volatility? A: Crude prices should be on the downside. Prices should trade in a range bound territory in the international markets. We are seeing prices hovering around USD 87-86.50 per barrel level. As I said earlier, prices on the downside would be somewhere around USD 85 per barrel. The upside would be restricted to an extent of USD 87.50 per barrel or so. We are bearish on crude in the domestic market for intraday. Therefore, we recommended selling crude contract on the MCX at around Rs 4,850-4,860 per barrel. We advocate a stop loss for this trade at around Rs 4,890 per barrel for downside targets of Rs 4,780-4,770 per barrel. The Middle East tensions are somehow being petered out. Overall it seems to be range bound with a bearish tone for the intraday. Q: How would you trade gold? A: The depreciation in Indian rupee would take the prices a bit higher. The sentiments are also buoyant after the US data came out. So, overall we are positive on Gold for intraday. The strategy would be to buy MCX contract for the month of December for Gold at around Rs 31,680-31,700 per 10 gram levels. We recommend a stop loss for this trade for intraday at around Rs 31,600 per 10 grams for upside targets of Rs 31,850-31,870 per 10 grams. For the day, we expect prices in the international markets to trade between USD 1,720-1,728 per ounce during the day. Currently, it is trading at around USD 1,720-1,725 per ounce levels. Q: Silver seems to have started with some strength. What are your views on that commodity? A: There is a little bit of strength in silver. Strategy would be to buy silver MCX December contract at around USD 61,300-61,350 per kilogram. We recommend a stop loss for this trade at Rs 60,900 per kilogram for upside targets of Rs 61,800 to 61,900 per kilogram.