Yesterday's massive correction has overdone for most of the commodities in the space. From the precious metal space, international gold prices fell 4.8% in September followed by a rally in dollar.
Kunal Shah, research head of commodities at Nirmal Bang Commodities feels that the gold prices might witness an upmove in one-two days. "One should go long in gold at Rs 27,850 per 10 grams with a stop loss below Rs 27,700 per 10 grams and target of Rs 28,250-28,300 per 10 grams in days to come," he suggested.
However, from the base metals space, associate director of commodities and currencies of Angel Broking, Naveen Mathur recommend a sell on the Multi Commodity Exchange (MCX) November contract of copper at Rs 397 per kilogram for a stop loss at Rs 405 per kilogram and a target of Rs 385-386 per kilogram.
Along with gold, international crude prices also slipped 4%. Lately, the crude has been supported essentially by supply issues, but now the attention will move to the economic situation, says Comm Trendz Research & Fund Management's director T Gnanasekar.
He believes that the crude can go to USD 75 per barrel in the international market and any rally can be sold on the MCX. He advised an MCX October contract towards Rs 4,065-4,075 per barrel as an opportunity to sell for a target of Rs 3,950 per barrel.
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