Bearish on crude oil: Vandana Bharti, SMC Comtrade Ltd

In an interview with ET Now, Vandana Bharti, Senior Research Analyst, SMC Comtrade Ltd., shares his views on commodities outlook.

What about crude, it has hit a fresh 17-month low? Would you advise investors to buy?

Last quarter it was the worst quarter in crude and in most of the commodities since 2008. I am expecting further fall in the prices of crude oil because even technically it has breached the market of $80. Now we are expecting the downside of $76 in NYMEX. Even in MCX, we are expecting the level of say 3700 for crude oil. Actually we have seen some output cut from Saudi Arabia, but it was well maintained by the output increase in Libya as well as in Iran. So moreover macro factors, they have indicated bearish outlook for crude oil. So I will suggest further sell in crude oil for the level of 3700. The second factor is dollar index. Actually it is dominating in the market right now and I am expecting that dollar index may touch the higher side of 81. After 4 months of consolidation between the level of 72 to 76, it has given the breakout.