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Stocks of most metal companies are expected to continue their rally next week tracking
the overall market, their rally has surpassed even most bullish of expectations. It
recommends metal stocks for any fresh buying. We believe that CNX Metal Index will
find resistance at 2365 and support at 2290. Index rose 7.87% this week, against a 4%
rise in Nifty and a 3.8% rise in Sensex. Hindalco Industries continued its upward rise this
week, rising 18.22% this week even after rising almost 8% in earlier week,
with attributing it to value buying. Investors should either book partial profits or wait for
declines to buy Hindalco, and believes that stock may touch 140 rupees if it crosses 127
rupees level. Stock's 52-week high is 126.85 rupees.
For the week ahead, steel sector looks good. While we see some move upwards in metals
sector, on a fundamental level. On a long term perspective though, steel sector attributing
its stance to weak demand, weak pricing, and regulatory problems faced by sector. All
steel stocks under its coverage such as JSW Steel, Tata Steel and Steel Authority of
India.
India Ratings too added to the 'long-term' gloom overshadowing metal sector by retaining
its stable-to-negative rating on non-ferrous metal sector with aluminium companies seen
as worst placed due to coal and furnace oil prices and lower physical premiums expected
in 2014-15, with copper seen as better placed but still plagued by low pricing and global
oversupply. Integrated players such as Hindustan Copper will be better placed than its
peers as the others rely on imported copper concentrates. Zinc companies will be better
placed among non-ferrous pack, on expected uptick in demand from US and because
China will remain a net importer of the metal
Stocks of most metal companies are expected to continue their rally next week tracking
the overall market, their rally has surpassed even most bullish of expectations. It
recommends metal stocks for any fresh buying. We believe that CNX Metal Index will
find resistance at 2365 and support at 2290. Index rose 7.87% this week, against a 4%
rise in Nifty and a 3.8% rise in Sensex. Hindalco Industries continued its upward rise this
week, rising 18.22% this week even after rising almost 8% in earlier week,
with attributing it to value buying. Investors should either book partial profits or wait for
declines to buy Hindalco, and believes that stock may touch 140 rupees if it crosses 127
rupees level. Stock's 52-week high is 126.85 rupees.
For the week ahead, steel sector looks good. While we see some move upwards in metals
sector, on a fundamental level. On a long term perspective though, steel sector attributing
its stance to weak demand, weak pricing, and regulatory problems faced by sector. All
steel stocks under its coverage such as JSW Steel, Tata Steel and Steel Authority of
India.
India Ratings too added to the 'long-term' gloom overshadowing metal sector by retaining
its stable-to-negative rating on non-ferrous metal sector with aluminium companies seen
as worst placed due to coal and furnace oil prices and lower physical premiums expected
in 2014-15, with copper seen as better placed but still plagued by low pricing and global
oversupply. Integrated players such as Hindustan Copper will be better placed than its
peers as the others rely on imported copper concentrates. Zinc companies will be better
placed among non-ferrous pack, on expected uptick in demand from US and because
China will remain a net importer of the metal
