Kishore Narne, Associate Director-Head - Commodity & Currency at Motilal Oswal Commodity Broker spoke with Latha Venkatesh and Sonia Shenoy on CNBC-TV18. He spoke about the current trend in commodities markets.Below is the transcript of the interview.
Latha: Let us start with gold, that has got a huge leg up in the global markets. How would you trade it today, rupee also stronger?
A: I think we have seen gold rebounding over the last couple of months and I feel that we have hit almost a medium-term bottom kind of a thing and probably we have changed our macro view on gold to buy on dips and we are recommending to go long. We have just released a quarterly report on that as well.I think for the day also it looks good both dollar and international gold will support it so buy at around Rs 26,350 per 10gm with Rs 26,200 per 10gm as a stop loss for the day and a possible targets of Rs 26,600 per 10gm towards the end of the day.
Sonia: We already are at Rs 26,160 per 10gm. For the slightly longer-term investor who has about one-two year time horizon, what do you think the target on gold could be?
A: I think as we have seen that we should be looking at a new high in domestic terms, in the next 24 months or so. So typically, in dollar terms probably we are looking at maybe another USD 1250-1300 per ounce levels and if you do a parity at around Rs 71-70 kind of a thing for another 20-24 months, it should be reaching a new high in domestic markets.
Latha: Can you take us through your crude strategy as well?
A: I think crude short-term looks pretty much a short covering rally and the rally should continue for a while. Buy around Rs 2,960 per barrel in domestic markets for the day and Rs 2,910 per barrel should be the stop loss and Rs 3,040-3,050 per barrel should be the targets for the day.
Latha: Dollar/INR?
A: Dollar/INR should be seeing a slight depreciation, broadly it is in the range of around 66.25 per USD and 66.75 per USD but for the day a slight depreciation could be warranted around 66.45 per USD should be a good level to buy October contracts and 66.30 per USD should be a stop loss and 66.70 per USD potential upside target for the dollar today.
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