Crude can touch $74-80/bbl before heading back: CommTrendz

In an interview with CNBC-TV18, T Gnanasekar of CommTrendz Research & Fund Management says that if he had to take a short term call on crude, it was definitely a time to sell. He feels that crude could potentially see a bottom of USD 74 to USD 80 per bbl.

Talking about the currency futures, Gnanasekar said, "I would not bother about any negative news coming out of the euro zone any further because that will be priced in. My sense is to sell on any rallies now in June Futures, which is anywhere between 56-56.10 levels." Below is the edited transcript of the interview on CNBC-TV18. Also watch the accompanying video. Q: How would you play crude? On the global level it has not been able to hold to that USD 99 per bbl mark. Is it selling time further?
A: If one were to take a very short-term call, yes. But, the way it has fallen all the way from USD 125 per bbl to USD 80 per bbl, it will definitely attract some bargain hunting interest. The risk sentiment hopefully becomes better going forward, in a couple of weeks.
I think we could potentially see a bottom anywhere between USD 74 to USD 80 per bbl levels and then it could start heading back. But, fundamentals are definitely not good. We all know about all the bad numbers coming in, very high stocks in the US. All this is going to cap the upside as well. So we are not going to expect any major upside also. Q: If you are looking at Indian currency futures closely at this point in time, in the spot market OTC, we have seen 55.85 as well, though at the moment it is at 55.79. Anything on the currency futures, are you expecting the dollar to get pricier?
A: I think most of the negative news is sort of priced into the dollar. Technically also it is showing a clear divergence and a possible top established recently at 56.40 levels. Certainly it's a sell on rallies.
I would not bother about any negative news coming out of the euro zone any further because that will be priced in. My sense is to sell on any rallies now in June Futures, which is anywhere between 56-56.10 levels.