Metal Stocks Outlook for the week – 01 to 05.08.2016
(May fall on profit booking next week)
( www.rupeedesk.in )
The Stocks of major metal and mining companies are seen
correcting downward next week as they
have been overbought in the last few sessions. The chances
of profit booking is high correction to the
extent of 2250-2300 points is seen (in case of Nifty Metal
index) and the immediate resistance of the
index at 2500 points.
Investors would be eyeing any decision on extension of
minimum import price of steel products,
which is set to expire on Aug 5. The government had on Feb 5
imposed minimum import price on 173 steel item lines for six months, to protect the companies
from cheap imports coming into the country from China, South Korea, and Japan. The decision is crucial
for domestic steelmakers as they were facing predatory pricing from global exporters.
Steel Minister Chaudhary Birender Singh on Thursday asked
the industry to prepare a "roadmap" to
become competitive in the international market even if the
minimum import price on steel products is
extended after its expiry in August.