Sell crude; buy silver and gold: PJ Commodity

Shreekant Jha of PJ Commodity Ventures in an interview to CNBC-TV18 gave reading and outlook for various commodities.

He recommends selling crude MCX march contract at Rs 5,100. "While we would still say it is a sell and we would say sell it around Rs 5,100. That Rs 5,100 would turn out to be critical because if it does break that and go down to the upside than maybe looking at something else," he added. Meanwhile, he has a buy call on both silver and gold. One can buy silver MCX March contract at Rs 55,500 and gold MCX March contract at Rs 27,900. Below is the edited transcript of the interview with CNBC-TV18. Also watch the accompanying video. Q: Crude touched six months highs on Brent where do you think things pan out from here - is it good to go long even at current levels or is it a shorting time in the domestic markets? A: It is a tough one because we are talking about shorting at Rs 4,900 and it took support at Rs 4,800. Now it is correcting the down move from 5,400 levels to about Rs 4,800. So, while we would still say it is a sell and we would say sell it around Rs 5,100. That Rs 5,100 would turn out to be critical because if it does break that and go down to the upside than maybe looking at something else. But if you are going to stay with the trend, then shorting it at 5,100 is would be a practical thing to do. Q: You would be a buyer in precious metals both gold and silver on your buy list? A: I would be a buyer, but with little bit of patience because both are giving a buy signal. It is looks like they are not coming down, so you should be buying into them, but they are not doing anything major at present. Silver was at same levels last week and still continues to be at the same level. It does not give you any opportunity to go short, which means you have to go long. One just needs have to be a little patient and hang in there. Buy it at around Rs 55,000 levels and might get Rs 57,000-58,000. As far as gold is concerned, the April contract is hovering around Rs 27,900, so buy it over there. One should see Rs 28,300 and none of them have gained momentum. One can buy it and wait. Something might happen during the course of the week.