Buy crude on dips; sell precious metals: IIFL

In an interview to CNBC-TV18, Tarang Bhanushali, IIFL shared his reading and outlook on crude and gold.

Below is the verbatim transcript of Bhanushali's interview with CNBC-TV18.

Q: Your views on crude that seems to be retracting fast, how would you trade that and with what kind of targets?

A: Crude has broken above the range it has been trading over the past two months; the range of USD 93 to USD 99 per bbl, it was not able to break it on either side. Yesterday's breakout would lead to a sharp rally in crude. If one sees one more day's closing above USD 100 per bbl then crude is headed towards USD 109-110 pre bbl in the international market. One can buy on dips around USD 105 per bbl to USD 101 per bbl keeping a target of USD 107 per bbl in the international market.

Q: How would you trade gold?

A: The trend continues to be downwards. We believe that as long as it remains below USD 1,272 per ounce, one can go short on gold. The rise in dollar would further add the bearishness in gold and demand from India has been quite light due to various restrictions put by the central bank as well as with the demand very lower due to off-season. However, gold is headed lower to USD 1,140-1,150 per ounce in the international market and we would take a call and that would be some bargain hunting for gold at the moment. Therefore, we are net sellers in precious metals and bias for crude at the moment.