Q: The commodity markets have been reasonably strong last few days. Do you see crude rallying more from here? A: I do think that crude will continue to rally its momentum and I think it might take it up to USD 84 per barrel mark. Ever since it has breached USD 80 per barrel overnight, things have turned out to be quite good, quite bullish. On the demand side of course, the US economy is not doing that well but that has not been able to bring down crude prices. Yesterday the American Petroleum Institute (API) data was mildly weak and we are expecting the API data today would also continue to remain weak. So rallying in crude will continue. Q: What about something like copper? A: As far as copper is concerned, the weak data that emerged yesterday from the US is negative on copper but what is overshadowing that is the fall in inventories in London Metal Exchange (LME) as well as in Shanghai Futures Exchange (SHFE). The inventories have fallen more than 8% over the last week or so. This fall is going to trigger more demand from China to restock them. This is what is supporting prices and keeping prices afloat. I think if copper touches around Rs 340 per kg or less than that, that would give us a good buying signal and we should be going long targeting Rs 345 per kg or maybe Rs 347 per kg on the higher side.

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