Get Anand Rathi Commodities view on crude and copper

In an interview to CNBC-TV18, Ritesh Gandhi, senior research analyst (Commodity & Currency) at Anand Rathi Commodities Limited gives his view on select commodities like crude and copper.

Below is an edited transcript of his interview. Watch the accompanying video for more. Q: What is your strategy on crude?
A: We believe crude prices will be supported underpinned by the situation in the Middle East and North Africa region. Yesterday we had a news agency report that a major pipeline explosion took place in Saudi Arabia although this report was later denied by Saudi Arabia. Yet, prices have spiked up and tested the key level of USD 110 per barrel for WTI.
We believe that this is going to be the next key resistance even now. If we see prices sustain above USD 110 per barrel for WTI and about USD 127 per barrel for Brent crude then we should be looking at further gains. So our strategy will be to buy dips even in the domestic market close to about 5,340. We will be targeting 5,450 levels soon. Q: How would you trade copper?
A: Copper has been largely range bound over the last few weeks now and there has been a lot of mixed data that we saw over the last two days also. We had manufacturing numbers from China which was a surprise to the higher side but manufacturing numbers from US were disappointment last evening.
We believe that this range bound action should continue and it will be between about USD 8,400 to USD 8,700 on the London Metal Exchange (LME) but within this range we look to buy dips and one of the major reasons for that is the declining stocks on LME that continue to underpin prices.
We have seen that stocks have dropped to almost two-and-half year lows and cancelled warrants are almost 32% that is the metal that is earmarked for delivery. So this indicates that there maybe further slippages in inventories on the LME even in the days ahead and good support prices. We will be looking to buy dips in the domestic market targeting about 436-437 on the higher side.