Metal Stocks Outlook for the week – 21 to 24.08.2017
Metal Stocks Outlook for the week – 21 to 24.08.2017
( www.rupeedesk.in )
The strong momentum in stocks of metal and mining companies is likely to continue next week, with gains in this space likely to outpace benchmark indices. This week, the Nifty Metal index gained over 5%, compared with 1% gains in the Nifty 50 and the Sensex, while most of stocks rose 3-9%. The gauge of metal stocks hit an over three-year high earlier this week, as gained, tracking the surge in base metal prices, particularly aluminium. It has been maintaining uptrend since long and made a steady up-move from roughly 2,850 to 3,400 marks in last two months. It is still looking strong on charts and has potential to cross its record high. The Nifty Metal index had hit a lifetime high of 3553.35 points in June 2014. Apart from strength on technical charts, gains in the shares of metal and mining companies is likely to be supported by structural supply-side reforms globally, as well as by strong domestic demand. Prices of nickel, zinc and aluminium on the London Metal Exchange
have been strong because of capacity cuts in China for some metals, and their spill-over effects to some others. Further movement in prices of base metals will be the key triggers for these stocks.
Source : Cogencis Information Services Ltd.
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Metal Stocks Outlook for the week – 21 to 24.08.2017
( www.rupeedesk.in )
The strong momentum in stocks of metal and mining companies is likely to continue next week, with gains in this space likely to outpace benchmark indices. This week, the Nifty Metal index gained over 5%, compared with 1% gains in the Nifty 50 and the Sensex, while most of stocks rose 3-9%. The gauge of metal stocks hit an over three-year high earlier this week, as gained, tracking the surge in base metal prices, particularly aluminium. It has been maintaining uptrend since long and made a steady up-move from roughly 2,850 to 3,400 marks in last two months. It is still looking strong on charts and has potential to cross its record high. The Nifty Metal index had hit a lifetime high of 3553.35 points in June 2014. Apart from strength on technical charts, gains in the shares of metal and mining companies is likely to be supported by structural supply-side reforms globally, as well as by strong domestic demand. Prices of nickel, zinc and aluminium on the London Metal Exchange
have been strong because of capacity cuts in China for some metals, and their spill-over effects to some others. Further movement in prices of base metals will be the key triggers for these stocks.
Source : Cogencis Information Services Ltd.
