Ahead of Oil Pro­duc­ers’ Meet, Bears up the Ante

The Economic Times - - Commodities Plus - Ram.Sah­gal@ times­group.com

Mum­bai: The top 10 bears in crude oil on com­mod­ity bourse MCX don’t seem to be­lieve that a meet­ing on an out­put freeze be­tween Opec and non-Opec mem­bers next Sun­day will yield fruit. This even as crude spurted by al­most 6% on Wed­nes­day, af­ter com­ments by Opec’s gover­nor Nawal Al-Fuzaia that Opec and non-Opec pro­duc­ers could agree to freeze out­put with­out Iran at a meet­ing in Doha on April 17.

The top-10 shorts — as they are called — raised bear­ish bets by a cu­mu­la­tive 196 con­tracts (19,600 bar­rels) to 13,014 con­tracts on Wed­nes­day af­ter the most ac­tive con­tract ex­pir­ing on April 19 rose by 5.67% to .₹ 2,515 a bar­rel, track­ing the con­tract and ad­justed for cur­rency on Wed­nes­day. The top-10 bulls in crude, or longs, cut po­si­tions, or booked prof­its, by a cu­mu­la­tive 23 con­tracts or 2,300 bar­rels to 8,399 con­tracts cu­mu­la­tively.

To­gether both longs and shorts hold 52% of open in­ter­est on crude on MCX. The shorts’ po­si­tion build up runs con­trary to bro­kers’ calls to ini­ti­ate fresh bullish bets un­til April 17. Har­ish Galipelli, head of com­modi­ties, Inditrade, ad­vises a buy at .₹ 2,500 for a tar­get of .₹ 2,800 be­fore April 17. He ad­vises plac­ing a stop loss be­low .₹ 2,350.

Gnanasekar Thi­a­gara­jan, di­rec­tor, Commtrendz, ex­pects price to trade in a “pos­i­tive” bias in a .₹ 2,450-2,700 range. Suresh Nair, di­rec­tor, Ad­misi Com­modi­ties, also pre­dicts bullish­ness on hopes of a pro­duc­tion freeze by Saudi Ara­bia, Rus­sia, Venezuela, Qatar, etc.

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