Commodity bets: Buy gold on dips, Sell copper on rallies

"We are noticing some short term buying opportunity for October gold contract on MCX,"says Rajini Panicker, Head of Commodities Research, MF Global Commodities India. She recommends buying gold on dips to about Rs 26,000 -25,950 with a stop around Rs 25,870 and target of Rs 26,500.

Meanwhile, Ram Pitre, Director, Brics Securities suggested a sell on copper in the range of Rs 370-374 with a stop loss of Rs 378 for a target price of Rs 360 and Rs 348. According to Suresh Nair, Head-Commodities, Admisi Commodities Pvt Ltd, renewed optimism in the euro zone will continue to support the copper prices in the short term. However in the long term negative Chinese demand and fears of US recession will continue to push copper prices on the downside. "We expect LME prices to test USD 7,000 on the downside. In the local market we would recommend to sell on rallies. Sell MCX copper above levels of Rs 370 with a stop loss at Rs 375 and take profit at Rs 358," he added. Among the base metals pack nickel has remained one of the very volatile commodities. "We have seen huge price swings in this commodity in the last few trading sessions. Rallies to Rs 925-930 will always remain capped in the near term till this entire uncertainty in commodities sell off is clear," says Ashish Shah of Sushil Global Commodities. Shah expects rallies to Rs 925-930 to always remain capped in the near term till the uncertainty in commodities sell off is clear. He advises to use rallies to those levels to sell.  "I expect the counter to eventually correct to 850 levels and further to 835 and 820 levels. These are the levels where short positions should look at booking profits and longs may wait for sharp dips to Rs 820 to start going long. Overall stop loss on nickel should be maintained is above Rs 962," he added. Also watch the accompanying video.