We see metal stocks moving up next week with preference seen for non-ferrous companies. Investors will eye production data of steel majors like Tata Steel and JSW Steel, due next week. We have a positive outlook on the CNX Metal Index for a mid to long term, and believes the current short-term correction will halt. Sesa Sterlite and Hindalco will be preferred stocks next week. Sesa Sterlite is in the oversold zone.
The stock has been consolidating in the past. Wait for the stock to decline to 125 to initiate long positions. On JSW Steel, although the stock almost touched its 52 week high Thursday still has a positive outlook on it. While we expect a short-term decline, the stock remains a buy-on-dip. The worst seems to be over for Steel Authority of India and expects the company to benefit from an expected demand uptick in the long steel segment in Oct-Mar 2014-15.
The stock has been consolidating in the past. Wait for the stock to decline to 125 to initiate long positions. On JSW Steel, although the stock almost touched its 52 week high Thursday still has a positive outlook on it. While we expect a short-term decline, the stock remains a buy-on-dip. The worst seems to be over for Steel Authority of India and expects the company to benefit from an expected demand uptick in the long steel segment in Oct-Mar 2014-15.
