Metal Stocks Outlook for the week – 12 to 16.10.2015 (Narrow range with negative bias)

Metal Stocks Outlook for the week – 12 to 16.10.2015

(Narrow range with negative bias)

  ( www.rupeedesk.in )

Stocks of metals and mining companies may move in a narrow range with a negative bias next week after a recent rally following a bounceback in global commodity prices. CNX metal index looks choppy in the week ahead retracement is also seen. Slight profit booking may also be seen next week.

Late Thursday, the global mining behemoth Glencore Plc cut its annual zinc production target by 500,000 tn a year, more than a third of its annual production, hoping to support zinc prices, which had been languishing at five-year lows.

Stocks of Vedanta surged 11.52% to 103.60 rupees after Goldman Sachs said that risk-reward was favourable for the stock and maintained a 'buy' rating. Vedanta would continue to outperform its peers next week due to its diversified business across oil, aluminium, copper and zinc. Also, despite a rebound in global commodity prices, domestic demand remains subdued.