Kunal Shah of Nirmal Bang Commodities on Wednesday said he sees upside in crude and metals.
On crude oil, Shah said, “The OPEC meeting has opened the door for further upside, OPEC has clearly mentioned they are not going to increase their production. I think the trend is definitely going to be upbeat right now, cautiously bullish.”
“One can go long even at current levels, it can still surprise on the upside and it can still go up. Fundamentals keep aside right now, the liquidity is playing a major role, the way dollar Index is going every day that is bringing buying into commodities.”
“We are bullish mainly because of the liquidity, ongoing liquidity which is there in the system.”
On metals, he said, “Already the price that we are seeing today in most of the metals is absolutely unbelievable, the way metals prices have rallied, so small profit-taking during the Christmas can come. But the trend is definitely going to be bullish going forward.”
“I remain optimistic about the outlook of copper, nickel even though they have rallied I think the downside is very limited, the trends still looks bullish to me.”
“Conservatively, 20 percent upside is something which we are working within metals, but I am expecting during the last 10 days of Christmas some profit-taking to come in and hence I will recommend to aggressively go long for that 20 percent upside.”
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