Metal Stocks Outlook
Seen dn next wk as imports from China still high
This story was originally published at 22:58 IST on 6 September 2024
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MUMBAI – Shares of steel companies are seen falling next week as imports from China remain high, affecting product prices globally. At the same time, a fall in coking coal prices, which is a key raw material for the industry, may help offset the impact of lower prices on margins.
"Despite a decline in Chinese steel production, Chinese steel exports remained high, driving global steel prices, to their lowest level in the past four years. Indian steel prices are still above import parity prices, indicating further downside," IDBI Capital Markets & Securities said in a report today. The brokerage is neutral on the sector and said high valuations of steel companies may limit upside.
Going forward, a higher import duty on steel may provide a positive trigger for the sector, analysts said. On Wednesday, Union Steel Minister H.D. Kumaraswamy had said that he would engage with the Finance Ministry to raise import duties from the current 7.5% to 10-12%.
The Nifty Metal index ended 2.6% lower this week with shares of Jindal Stainless falling 8.5%, those of Hindustan Copper falling 6% and NMDC falling 5%.
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Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Hindalco Industries | 667.10 | (-)4.90 | 681.40 | 658.30 |
| Hindustan Copper | 311.85 | (-)6.20 | 321.40 | 301.40 |
| Hindustan Zinc | 486.85 | (-)2.80 | 501.80 | 478.10 |
| Jindal Steel & Power | 953.95 | (-)1.70 | 985.70 | 921.90 |
| JSW Steel | 932.80 | (-)0.90 | 955.70 | 900.30 |
| NMDC | 210.98 | (-)5.30 | 215.70 | 205.00 |
| Steel Authority of India | 129.38 | (-)3.20 | 133.50 | 126.20 |
| Tata Steel | 151.22 | (-)1.00 | 154.50 | 148.00 |
| Vedanta | 459.80 | (-)1.90 | 475.60 | 449.30 |
| Nifty Metal | 9161.15 | (-)2.60 | 9337.00 | 9014.00 |
| Nifty 50 | 24852.15 | (-)1.50 | 25308.20 | 24573.30 |
| S&P BSE Sensex | 81183.93 | (-)1.40 | 82746.40 | 80200.70 |
End
Reported by Anshul Choudhary
Edited by Akul Nishant Akhoury
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