As for silver ETFs, DSP Silver ETF, Aditya Birla Sun Life Silver ETF, Axis Silver ETF and others were trading with gains of up to 1%.
Commenting on Silver’s rally, Anuj Gupta, Head Commodity & Currency at HDFC Securities said that silver has been creating new records and in physical markets in Delhi-NCR, it has surpassed Rs 1,00,000 levels.
Silver’s appeal has been going up on industrial demand and by virtue of being a haven along with its pricier cousin gold, Gupta said. He sees another 3-5% rise in the run-up to Dhanteras.
Silver’s gains on the year-to-date basis stand at 33% or Rs 25,036 per kg, Gupta informed.
“Silver prices have continued their rapid upward momentum, surging past Rs 100,000 in the physical Indian markets, with the fast-paced rally suggesting that prices could reach Rs 110,000 before Diwali. As retail investors rush to buy silver, spurred by the heavy rise in gold prices, silver appears relatively more affordable at Rs 100,000 per kilogram, while gold is now trading at Rs 78,000 for 10 grams,” Jateen Trivedi, Vice President, Research Analyst – Commodity and Currency at LKP Securities said.
Concurring with Gupta’s view, Trivedi said that the global demand for silver is being driven by the electric vehicle (EV) industry and the rising use of photovoltaic technologies in renewable energy, is contributing to a sustainable increase in silver’s value.
This strong demand outlook, coupled with macroeconomic uncertainty and geopolitical tensions, has provided further support for silver’s rally. On the MCX, silver prices have touched the ₹99,000 mark, buoyed by Comex silver, which has reached $34.40. The breach of the $34 level has ignited fresh buying interest, solidifying silver’s bullish trend.
In the short term, silver faces resistance around Rs 1,00,000-Rs 1,01,000, with the next target of Rs 110,000 in view, Trivedi said. Support for silver is seen in the Rs 96,000-Rs 96,500 range.
Trading strategy by Anuj Gupta
Buy Silver December futures at Rs 96,000 with a target of Rs 1,00,300 and stop loss of Rs 95,240.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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