METAL STOCKS OUT LOOK FOR NEXT WEEK
Shares of major mining and metal companies are seen trading
with a positive bias next week due to a rise in steel prices and
improvement in the overall market sentiment.
“The domestic steel producers have hiked their prices by
the imposition of the minimum import price, so we can say
that they are in an
However, companies do not have much headroom to
increase the prices, as
domestic demand is still not at a required level.
The full impact of the imposition of the floor price on
steel products is
expected to be gradual as the companies are likely to
hike product prices
over the next three months.
Current steel prices are below-sustainable levels and
need to correct
over a period of time, as margins of domestic steel
producers are under
severe pressure, JSW Steel Ltd’s Director, Commercial and
Acharya had told Cogencis.
“There are expectations (from the budget), that there
will be investment
in infrastructure and the steel industry can
stabilize post the budget”.
We expects shares of JSW Steel to face resistance
at 1,134.60 rupees and find support at 1,023 rupees.
Strong resistance existed for Tata Steel at 264.80 rupees
and support at 238.30 rupees. The resistance for Hindalco is
seen at 72.80 rupees, while support is pegged at 65.30 rupees.
The resistance for Vedanta is seen at 79.40 rupees.
Positional traders try to hold steel stocks in cash .
Our best choice is Jsw..Vedata( buy in dips)