Fundamentally, gold prices seem to be trending down and could trade around Rs 28,500 per 10 gm levels. So,one can technically sell gold around that level with a stop loss at Rs 28,750 per 10 gm. Target on the downside is around Rs 28,300 per 10 gm said Naveen Mathur, Angel Commodity Broking in an interview to CNBC-TV18.
He has a sell call on MCX silver for the month of March at Rs 44,000 per kg with a stop loss of Rs 44,500 per kg and downside target in the range of Rs 43,300-43,400 per kg.
However, he is positive on crude and recommends buying crude oil contract on the MCX for the month of January in a range of Rs 6,140 to Rs 6,150 per barrel. Upside targets are around Rs 6220-6230 per barrel with a stop loss of around Rs 6,090 per barrel, he said.
Also read: I wouldn't buy gold with my worst enemy's cash: Strategist
Below is the verbatim transcript of his interview on CNBC-TV18
Q: In the last few days we have seen volatility in gold, how would you approach that?
A: Earlier the market was volatility because of the concerns on the Fed tapering and it was not clear whether the Fed would go ahead with tapering in December or postpone it for the next year. However, since it has happened now - the USD 10 cut down on the Fed tapering or the bond buying programme, the dollar has appreciated initially which resulted into some kind of volatility in the domestic prices as well as in international prices for gold.
The trend remains on the downside, we do not see much of the upside or pullback in gold price. All the fundamental reasons are showing a negative trend on gold even rupee is appreciating today, so around Rs 28,500 per 10gm levels is where the gold prices would trade. Therefore, not much to be seen in intraday position but still technically can sell gold at around Rs 28,550 per 10gm with the stop loss to be put in for this trade around Rs 28,750 per 10gm and targets on the downside in a range of Rs 28,300 per 10gm. We have seen gold prices on Friday touching around Rs 28,200 per 10gm on the MCX.
Q: What would you do with silver? Is the strategy there on similar lines as well?
A: Yes very much. The only positive beamer for silver is some kind of US data which came out on Friday saying little bit positivity about the US gross domestic product (GDP) growth etc, which may lead to not too much pressure on the downside because silver is an industrial commodity too and we are expecting that the commodities in industrial side of metal would somehow be positive. So taking cues both from gold and copper prices. We think the markets will be pretty much range bound.
Technically we would recommend to go along with the trend in gold and therefore silver would be a sell call on the MCX for the month of March at around Rs 44,000 per kg, we would recommend stop loss at Rs 44,500 per kg and target on the downside in a range of around Rs 43,300 per kg to Rs 43,400 per kg levels.
Q: What about crude?
A: Crude is positive because of data pointers on Friday so Indian market also would be pretty much range bound in terms of rupee prices but technically looks positive and hence the trading strategy on the technical side would be to buy the crude oil contract on the MCX for the month of January in a range of Rs 6,140 per bbl to Rs 6,150 per bbl. It is trading right now at around Rs 6,180 per bbl or so, stop loss to be put in for this trade at around Rs 6,090 per bbl and we are expecting targets on upside in a range of around Rs 6,220 per bbl to Rs 6,230 per bbl levels.
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