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Informist, Friday, Sept. 26, 2025

NEW DELHI – The Nifty Metal index is likely to find support at 9800 points in the near term, according to Amol Athawale, vice president of technical research at Kotak Securities. "As long as it is trading above this level, the bullish formation remains intact. On the higher side, 10000 (points) would serve as a key resistance zone."

According to Athawale, if the index succeeds in trading above 9800 points, it could touch the levels of 10100 points to 10150 points. Further upside may also continue, potentially pushing the index to 10400 points. However, if it falls below the 20-day simple moving average or around 9800 points, the uptrend could become vulnerable, he said. Athawale has a positive outlook for the index in the medium term.

Friday, the Nifty metal index corrected sharply amid a weak market sentiment and closed 1.9% lower at 9888.25 points. It fell just over 1% during the week but rose 8% in Sept. In comparison, the benchmark Nifty 50 fell 2.7% during the week and almost 1% during the month.

Earlier this week, Nomura Financial Advisory and Securities reiterated its bullish view on the Indian steel sector, citing both domestic and global support factors. It said China's anti-involution measures have started yielding results, and at home, the growth trajectory remains strong with both apparent steel consumption and production increasing.

According to data from the World Steel Association, China produced 77.4 million tonnes of crude steel in August, down 0.7% on year. Since January, China's steel production has contracted 2.8% year-over-year. Meanwhile, India produced 14.1 million tonnes of crude steel in August, up 13.2% on year.

In the second half of the financial year, steel prices in India are expected to rise in response to higher demand, driven by the ramp-up in infrastructural activity, especially led by the government, an analyst at a domestic brokerage firm said. The festive season is also expected to bode well for the sector, the analyst added. "On the steel front, I do believe that it is a little heavy on valuations right now. That also attributes to the fact because the market will be looking at the positives. They (investors) do believe that the positives should be in place... so despite your pricing challenges, which is one of the biggest problems right now, the valuations are sort of still way above what historical averages have been."

Friday, Nuvama Institutional Equities said, amid expectations of a final levy of a safeguard duty on flat steel imports for three years and the end of the monsoon, domestic flat and long steel prices are likely to improve from November onwards.

Nomura raised the target price on JSW Steel to INR 1,300 from INR 1,220 while maintaining a buy rating on the stock. This was in light of the company's plan to enhance production capacity by 7 million tonnes per year by 2027-28 (Apr-Mar) and the goal to become 50% self-reliant in iron ore. The brokerage also increased the target price on Jindal Steel to INR 1,150 from INR 1,080, while maintaining the buy rating.

Meanwhile, Emkay Global Financial Services Wednesday upgraded Hindalco to buy from reduce with an increased price of INR 900 compared to INR 650 earlier. "We see aluminium prices going from strength to strength, which should benefit Hindalco's India business meaningfully, along with its industry-leading cost curve," the brokerage said. It added that Noveli's profitability has likely bottomed out. Emkay Global expects Novelis' margins to improve to $480 per tonne by FY28 and exceed $500 per tonne by FY29, from the current $430 per tonne.

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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:

End

US$1 = INR 88.71

Reported by Shakshi Jain

Edited by Saji George Titus

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