Metal Stocks Outlook for the week – 24 to 28.08.2015
Seen
range bound with a positive bias
( www.rupeedesk.in )
Stocks
of major metals and mining companies are seen trading in a range with a
positive bias next week. There are also possibilities of some bounce back in
the sector. The bounce back will, however, be temporary and analysts see a
downward correction in near future. The CNX metal index has fallen 13% since
Aug 1. Any uptick until 1,900 (points) should be utilised as shorting
opportunity.
The
worst is yet to come for the metals and mining sector. We attribute it to the
sustained fall in
global
commodity prices during the last one year. Depreciation of Chinese currency
Yuan may lead to a rise in exports from the country and would suppress demand
for Indian metals, adding to the woes of the ailing sector.