Metal Stocks Outlook
Seen consolidating next week; triggers from China eyed
This story was originally published at 22:31 IST on 18 October 2024
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MUMBAI – Shares of metal companies are expected to consolidate next week after the volatility seen in prices so far this month, analysts said. Movement in the sector will be stock-specific as major metal players are yet to report their Jul-Sept earnings, they added. News flow from China will continue to have a bearing on shares of Indian metal companies, as it is a significant market for domestic players, analysts said.
Steel companies are expected to report lower earnings for the September quarter, Ruchit Jain, lead research analyst at 5paisa, said. This is because margins may be muted as price of steel has not increased much for the quarter, he said.
JSW Steel is scheduled to post its quarterly earnings Friday. The company is expected to report a weak bottom line and operating profit in Jul-Sept, with consolidated net profit falling 85% on year and 53% on quarter to INR 4.01 billion.
Investors will keep an eye out for developments from China after the People's Bank of China said it could cut benchmark lending rates again as soon as Monday. China's central bank Friday launched two schemes to pump as much as 800 billion yuan ($112 billion) into its stock market. Both these programmes were announced late last month to boost the country's equity market and revive its economy. Further, data released early Friday showed the property crisis in China is far from over, highlighting the need for the government to lend a push to housing sector.
The Nifty Metal index was one of the top gaining sectoral indices Friday, but was the second-worst hit in terms of weekly performance. The index settled 1.6% lower at 9753.90 points Friday.
TOP HEADLINES
* Earnings Review: Hind Zinc PAT, revenue highest in 8 quarters, beats Street
* Jindal Stainless Jul-Sept PAT falls 3.3% on year to INR 5.89 billion
* Earnings Outlook: Rise in output to aid Hind Zinc Jul-Sep top line growth
* Earnings Outlook: Volume momentum picks up for Tata Steel, prices stay lower
* Earnings Outlook: JSW Steel consol PAT seen dn 85% YoY, worst fall in 7 qtrs
* Global steel body appoints Tata Steel MD, CEO TV Narendran as new chairman
* JSW Steel gets redemption fine of INR 250 mln from customs
* Godawari Power to develop waste heat-recovery-based power plant
* Earnings Outlook: Wide view on SAIL PAT, but low realisation to hit topline
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 | 753.50 | 0.80 | 776.40 | 713.60 |
| Hindustan Copper | 323.00 | 2.30 | 338.40 | 299.20 |
| Hindustan Zinc | 506.50 | 0.50 | 532.80 | 480.80 |
| Jindal Steel & Power | 964.50 | (-)4.10 | 1003.30 | 904.30 |
| JSW Steel | 992.60 | (-)1.90 | 1013.10 | 962.80 |
| NMDC | 231.44 | (-)1.00 | 240.60 | 215.10 |
| Steel Authority of India | 129.03 | (-)3.70 | 133.50 | 123.20 |
| Tata Steel | 155.39 | (-)3.30 | 159.30 | 149.10 |
| Vedanta | 480.85 | (-)3.40 | 495.80 | 456.50 |
| Nifty Metal | 9753.90 | (-)1.80 | 9968.50 | 9376.90 |
| Nifty 50 | 24854.05 | (-)0.40 | 25087.90 | 24450.80 |
| S&P BSE Sensex | 81224.75 | (-)0.20 | 81990.30 | 80026.50 |
End
Reported by Alina Geogy
Edited by Deepshikha Bhardwaj
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