Kunal Shah of Nirmal Bang Commodities advised that any correction in natural gas prices can be used as a buying opportunity.
“I believe that already prices have run up and any correction should be used as a buying opportunity. I don’t recommend to go short in natural gas at this juncture. One should go long if it declines around Rs 330-328, again you can book profit at around Rs 345-348. This kind of strategy should be adopted with a stop loss of Rs 350,” he advised.
Speaking about crude oil, he said, “We have been given target of $65 per barrel for Brent that has been achieved, so I will not be very bearish from this levels. We have already seen capitulation taking place in oil, so from here another $2-3(per barrel) maximum downside you can witness.”
Talking about metals, he said, “Metals are oversold, what happened to gas, similar thing can happen to metals. If the US-China trade talks again resume and there is some positive outcome, metals are going to move up sharply. I like Nickel, fundamentally this commodity is very strong ... deficit is going to be double in 2019 as compared to what was in 2018, so on Nickel, one can go long at Rs 850 and stop loss should be placed at Rs 804 and expect prices to run-up and test levels of Rs 840.”