Metal Stocks Outlook
Seen bearish on weak base metal prices
This story was originally published at 19:51 IST on 26 July 2024
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MUMBAI – Shares of most metal companies may witness a bearish trend next week, according to analysts. Choice Broking analyst Deven Mehata said the trend for the sector looks bleak amid a fall in base metal prices globally. This week, the sectoral Nifty Metal index ended 1.8% higher at 9423.40 points. The benchmark Nifty 50 and BSE Sensex both ended 1.2% and 0.9% higher, respectively.
Mehata said that he expects to see selling in the stocks of the sector. He said the recent results, such as that of Jindal Steel, whose consolidated net profit for Apr-Jun fell 21% on year, and JSW Steel, whose consolidated net profit for the June quarter missed analysts' estimates by a wide margin, have not made matters any better. Investors will keep an eye on the overall Indian market that looks good for further gains, he said. Globally, the markets look good despite some volatility.
Brijesh Ail, head of technical and derivatives at IDBI Capital Markets & Securities, had a more optimistic view for certain stocks in the sector. The analyst said that key stocks in the sector such as Tata Steel, Hindalco Industries, and Vedanta are in a good position to do well next week.
TOP HEADLINES
* S&P upgrades Vedanta Resources rating to 'B-' from 'CCC+'
* Govt to launch steel import monitoring system version 2.0 later today
* Earnings Review: Jindal Steel consol PAT slips but beats Street view
* Jindal Steel Apr-Jun consol PAT falls 20.6% YoY to 13.4 bln rupees
* Earnings Outlook: High realisations to boost Jindal Steel & Power QoQ
* Earnings Outlook: Hindalco EBITDA seen strong despite subdued volumes
* Earnings Outlook:On-qtr drop in volume to drag down Tata Steel topline
* Vedanta preferred bidder for 2 mineral blocks in Karnataka, Bihar
* Vedanta OKs allotment of 193.18 mln shrs at 440 rupees/share to QIBs
* Earnings Review: JSW Steel EBITDA hit by lower volume, inventory loss
* JSW Infra board OKs buying under-development slurry pipeline project
* JSW Steel consol PAT dn 64% YoY; misses Street estimate by wide margin
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Hindalco Industries | 667.60 | 0.70 | 677.20 | 650.20 |
| Hindustan Copper | 315.40 | 2.50 | 322.40 | 306.50 |
| Hindustan Zinc | 603.50 | (-)6.00 | 633.80 | 583.80 |
| Jindal Steel & Power | 972.35 | 2.80 | 993.90 | 931.50 |
| JSW Steel | 900.55 | 1.30 | 928.40 | 861.40 |
| NMDC | 238.55 | 4.30 | 243.90 | 229.40 |
| Steel Authority of India | 147.39 | 3.90 | 150.50 | 142.30 |
| Tata Steel | 162.55 | 3.00 | 166.00 | 156.50 |
| Vedanta | 444.50 | 1.10 | 456.00 | 428.90 |
| Nifty Metal | 9423.40 | 1.80 | 9595.10 | 9129.90 |
| Nifty 50 | 24834.85 | 1.20 | 25152.60 | 24252.10 |
| S&P BSE Sensex | 81332.72 | 0.90 | 82338.10 | 79510.90 |
End
Reported by Pradeep Suresh V.
Edited by Manisha Baxla
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