Precious metals to see further selling pressure: IIFL

In an interview to CNBC-TV18, Tarang Bhanushali of IIFL shared outlook on commodities market.

Below is a verbatim transcript of the interview:

Q: Are you expecting big dips in commodities like crude?

A: I do not see a big dip but yes, we believe that the bounce back, which we have seen over the last few days, would end here and we would see further selling pressure coming into the commodities. Mostly, the precious metal is where we expect a bit of selling over the next two-three days.

Q: What about bullion, how would you approach it now in the light of the slip that we have seen internationally?

A: We expect a minor bounce back in today's trading session for gold. Something in the domestic market around Rs 26,650 per 10gm to Rs 26,700 per 10gm is a good level to short keeping a target of Rs 26,400 per 10gm.

However, one should keep a strict stop loss because if gold crosses the international mark of USD 1,475 per ounce then again people would get into the long positions in it. So, we believe if we are short then one should keep a strict stop loss of Rs 26,780 per 10gm in the domestic market.