Metal Stocks Outlook For The Week - 03 to 06.10.2017
Metal Stocks Outlook For The Week - 03 to 06.10.2017
( www.rupeedesk.in )
Stocks of metal and mining companies are likely to trade in a range in the holiday-shortened next week as caution ahead of Reserve Bank of India's monetary policy and key economic data may cap the upside. Before recovering in the last two sessions, metals stocks had remained weak for some time, tracking the fall in the broader market. However, we maintain that such declines in the sector should be used as an opportunity to enter the market as long-term outlook remains positive. An expected fall in China's steel output in the coming months due to closure of capacities owing to the winter cuts is also expected the keep sentiment positive for the sector in the near term. Going forward we expect the imports to reduce as Chinese steel mills cut production, thus leaving room for the Indian steel players to recapture the domestic demand. Positive outlook for the metal stocks was also backed by the rollovers to the October series of derivative contracts. Metals remain long candidates for October series. However, caution in the broader market ahead of the fourth bimonthly monetary policy for 2017-18 and Nikkei Manufacturing PMI for September may cap the upside in metal stocks. Among specific stocks, stocks of Steel Authority of India are likely to inch up after having declined nearly 14% in last two weeks.
Source : Cogencis Information Services Ltd.
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( www.rupeedesk.in )
Stocks of metal and mining companies are likely to trade in a range in the holiday-shortened next week as caution ahead of Reserve Bank of India's monetary policy and key economic data may cap the upside. Before recovering in the last two sessions, metals stocks had remained weak for some time, tracking the fall in the broader market. However, we maintain that such declines in the sector should be used as an opportunity to enter the market as long-term outlook remains positive. An expected fall in China's steel output in the coming months due to closure of capacities owing to the winter cuts is also expected the keep sentiment positive for the sector in the near term. Going forward we expect the imports to reduce as Chinese steel mills cut production, thus leaving room for the Indian steel players to recapture the domestic demand. Positive outlook for the metal stocks was also backed by the rollovers to the October series of derivative contracts. Metals remain long candidates for October series. However, caution in the broader market ahead of the fourth bimonthly monetary policy for 2017-18 and Nikkei Manufacturing PMI for September may cap the upside in metal stocks. Among specific stocks, stocks of Steel Authority of India are likely to inch up after having declined nearly 14% in last two weeks.
Tatasteel - Up
Coalindia - Up
Hindalco - Up
Jindalstel - Up
Jswsteel - Up
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