Metal Stocks Outlook
Seen in range next week due to high stock valuation
This story was originally published at 20:30 IST on 6 December 2024
Register to read our real-time news.Informist, Friday, Dec. 6, 2024
MUMBAI – Metal companies are likely to see range-bound movement as Indian companies continue to face pressure due to cheap imports, even as domestic demand remains strong. At the same time, the high valuation of stocks in the sector, especially of companies in the steel business, is likely to limit any upside.
Earlier this week, brokerage IDBI Capital said domestic prices may rise as the steel ministry proposed a 25% duty on certain steel imports. "In Nov’24, Indian HRC (hot rolled coil) prices remained under pressure along with a drop in domestic iron ore prices, while coking coal prices remained flat. This could aid margins for some of the Indian steel companies in the next quarter," the brokerage said in a note.
However, weak demand from China remains a concern and until that improves, analysts do not expect a significant rise in prices for Indian companies. IDBI Capital said Chinese steel exports rose to 11.2 million tonnes in November, which was the highest in the last nine years. Demand from China is weak despite several stimulus packages introduced by the country, the brokerage said.
Nifty Metal ended higher for the third straight week, gaining over 6% during this period. This week, the sectoral index rose 4%, with Vedanta rising over 10% and Jindal Stainless rising 9% during this period. Ratnamani Metals & Tubes was the only stock among the Nifty Metal constituents that ended in red in the weekly terms.
TOP HEADLINES
* SBI MF, Tata MF buy shrs of Ratnamani Metals for INR 2.62 bln via block deals
* CRISIL upgrades Vedanta's long-term rating to 'AA' from 'AA-'
* NMDC Nov iron ore sales up 5.5% on year at 4 mln tn, production up 17.8%
* India Ratings affirms 'IND AA' rating for Jindal Stainless' long-term loans
* SC refuses to stay SAT order nixing SEBI penalty vs Vedanta, issues notice
* SAIL in pact with John Cockerill to boost innovation, green steel technology
* NALCO appoints Vivek Kumar Bajpai as part-time official director
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 | 670.15 | 2.10 | 680.60 | 662.10 |
| Hindustan Copper | 287.80 | 4.30 | 296.00 | 279.40 |
| Hindustan Zinc | 510.00 | 1.10 | 524.20 | 492.30 |
| Jindal Steel & Power | 949.10 | 4.70 | 963.60 | 925.40 |
| JSW Steel | 1003.80 | 3.90 | 1015.50 | 988.80 |
| Jindal Stainless | 741.60 | 8.60 | 759.00 | 712.90 |
| National Aluminium Co | 248.26 | 2.50 | 255.90 | 241.90 |
| NMDC | 238.66 | 3.70 | 242.60 | 232.50 |
| Steel Authority Of India | 123.89 | 5.80 | 126.70 | 120.60 |
| Tata Steel | 148.29 | 2.60 | 149.90 | 145.80 |
| Vedanta | 501.40 | 10.60 | 526.00 | 460.50 |
| NIFTY METAL | 9397.15 | 4.00 | 9507.80 | 9214.80 |
| NIFTY 50 | 24677.80 | 2.30 | 24813.70 | 24552.60 |
| BSE SENSEX | 81709.12 | 2.40 | 82133.50 | 81294.00 |
End
Reported by Anshul Choudhary
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
