Nickel, zinc out of woods: Biren Vakil
ET Now spoke to Biren Vakil, of Paradigm Commodities, regarding his views on the markets.
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| ET Now spoke to Biren Vakil, of Paradigm Commodities, regarding his views on the markets.
ET Now: In crude oil, we have seen an uptick, but 83-84 continues to be a resistance. Do you think this rally could actually take those levels out?
Biren Vakil: We have seen prolonged consolidation in crude and as we know, the biggest move always originates from a dull market. I think weekly close above 82 would take crude towards 89-93. I doubt a violent move towards upside is conquered.
ET Now: What would you want to do with copper, aluminium, nickel kind of metals because they have done good in the recent days. How is the next quarter or even intraday strategy looking to you?
Biren Vakil: Nickel and zinc both are coming out of wood; especially zinc is coming out of wood after a three-year long bear market. Copper, momentum is very good but valuation is high but definitely market has shown a breakout after nearly three months’ consolidation. So we may see good upmove but rally has weakened. So my bet would be on nickel and on zinc.
Biren Vakil: Nickel is still almost half of its value from the peak. We may see part rupee reversal April onwards due to pent up import demand. So I see a little bit of upside in nickel and zinc.
ET Now: Finally on gold because that has also seen some bit of gains come back, $1100 dollars has come back. We saw levels like 1115 also in the markets yesterday. Would you be a buyer at these levels?
Biren Vakil: Gold is tricky situation. In non-dollar terms, it is definitely a buy story. In dollar terms, it is underperforming but definitely I would prefer to buy on weakness rather than selling on strength.
Biren Vakil: In Indian terms, 16200-16250 is very value buy.
ET Now: In crude oil, we have seen an uptick, but 83-84 continues to be a resistance. Do you think this rally could actually take those levels out?
Biren Vakil: We have seen prolonged consolidation in crude and as we know, the biggest move always originates from a dull market. I think weekly close above 82 would take crude towards 89-93. I doubt a violent move towards upside is conquered.
ET Now: What would you want to do with copper, aluminium, nickel kind of metals because they have done good in the recent days. How is the next quarter or even intraday strategy looking to you?
Biren Vakil: Nickel and zinc both are coming out of wood; especially zinc is coming out of wood after a three-year long bear market. Copper, momentum is very good but valuation is high but definitely market has shown a breakout after nearly three months’ consolidation. So we may see good upmove but rally has weakened. So my bet would be on nickel and on zinc.
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ET Now: The international markets have seen an uptick but if you look at the Indian charts and the Indian prices, there has been a bit of decline because of rupee appreciation. So what kind of returns are you looking at in the Indian markets keeping that in mind? Biren Vakil: Nickel is still almost half of its value from the peak. We may see part rupee reversal April onwards due to pent up import demand. So I see a little bit of upside in nickel and zinc.
ET Now: Finally on gold because that has also seen some bit of gains come back, $1100 dollars has come back. We saw levels like 1115 also in the markets yesterday. Would you be a buyer at these levels?
Biren Vakil: Gold is tricky situation. In non-dollar terms, it is definitely a buy story. In dollar terms, it is underperforming but definitely I would prefer to buy on weakness rather than selling on strength.
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ET Now: But what levels would you wait to buy on the lower side then? Do you think 16200 or 16000 levels would be incoming in coming days? Biren Vakil: In Indian terms, 16200-16250 is very value buy.
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