We are optimistic on the metal pack: BNP Paribas

Gaurang Shah, assistant vice president, Geojit BNP Paribas Financial Services, in a chat with ET Now talks about the dollar and the commodity pack.

What in your view is the dollar likely to do? How do you play the commodity pack, especially metals?

From a long-term basis, a gradual depreciation is what we expect the dollar should do and in case if you have a little bit of longish position on the dollar, then closer to those levels of 81.50-82+ kind of levels, you need to possibly liquidate. We do not see much upside going forward from hereon. Like we have seen last year, crude shooting up to 148-145 and then settling down to sub-140-145-135 kind of levels, anything, which is drastic does have a reaction on both the sides to a great extent.

As far as your question on commodities is concerned, we are a little bit optimistic on not only the entire metal pack but three of them is what we like as far as domestic consumption goes - steel, copper and zinc. I would use opportunities on the lower levels to accumulate frontline or selective mid-caps in all the three verticals of metals.