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Steel stocks are seen slightly higher next week as hints of a delay in the tapering of the Federal Reserve's bond buying programme surfaced again thus keeping foreign funds flowing into the sector, and also aided by a weak rupee against the dollar, though Tata Steel may see profit booking. A weak rupee makes imports expensive thus allowing companies to raise steel prices in India. Tata Steel has risen almost 90% since August and on a fundamental long term level the stock is seen rising further. After giving almost 100% returns, we expect the stock to see some correction this week as it is in the extremely overbought zone. On JSW Steel, we has a neutral-to-positive opinion. The support for the stock at 770-760 rupees and resistance at 887 rupees. If the stock climbs beyond 887 rupees, he believes that it may hit 920-930 rupees. Jindal Steel and Power is seen trading in range next week with a support of 228 rupees and resistance at 254 rupees. Steel Authority of India is seen trading with a support of 62 rupees and a resistance of 69 rupees. On the CNX Metal Index, he sees it being supported at 2230 and facing resistance at 2310. He has a neutral to slightly positive view on the index and expects it to reach 2352 levels if it breaches 2310.
Steel stocks are seen slightly higher next week as hints of a delay in the tapering of the Federal Reserve's bond buying programme surfaced again thus keeping foreign funds flowing into the sector, and also aided by a weak rupee against the dollar, though Tata Steel may see profit booking. A weak rupee makes imports expensive thus allowing companies to raise steel prices in India. Tata Steel has risen almost 90% since August and on a fundamental long term level the stock is seen rising further. After giving almost 100% returns, we expect the stock to see some correction this week as it is in the extremely overbought zone. On JSW Steel, we has a neutral-to-positive opinion. The support for the stock at 770-760 rupees and resistance at 887 rupees. If the stock climbs beyond 887 rupees, he believes that it may hit 920-930 rupees. Jindal Steel and Power is seen trading in range next week with a support of 228 rupees and resistance at 254 rupees. Steel Authority of India is seen trading with a support of 62 rupees and a resistance of 69 rupees. On the CNX Metal Index, he sees it being supported at 2230 and facing resistance at 2310. He has a neutral to slightly positive view on the index and expects it to reach 2352 levels if it breaches 2310.
