Metal Stocks Outlook for the week – 31.08.2015 to 04.09.2015
(Seen
in range with a positive bias next week)
Shares
of major metals and mining companies may continue to witness some pull-back
action in the next few sessions after being in the oversold zone at the
beginning of this week. Recovery may continue in the next week as well, that
overall, shares are seen trading in range with a positive bias.
Indications
of stability in global commodity prices could also be attributed to the
recovery. The CNX Metal index, which declined more than 5% over last week, may
find support at 1,750 points and face resistance at 1,930 points.
The
worst is not over for the metals and mining sector. Margins of aluminium and
steel
manufacturers
are under pressure due to fall in global commodity prices and dumping from China.
