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Informist, Friday, Jan. 2, 2025

 

MUMBAI – Stocks of metal companies are likely to rise further next week, supported by government policy and macroeconomic factors, according to analysts. "Buy-on-dips would be a better approach," the founder of a domestic equity and commodities research firm said, as the Nifty Metal index rose 5.7% in the week ended Friday.

 

Amol Athawale, vice president of technical research at Kotak Securities Ltd., said 11200–11100 points would act as the key support zone for the Nifty Metal index next week, while 11500–11700 points could pose crucial resistance. "We are of the view that the short-term trend of the Metal index remains positive. However, due to temporary overbought conditions, we could see narrow-range activity in the near future," Athawale added.

 

On Friday, the Nifty Metal index ended higher by 165.85 points, or 1.5%, at 11421.85 points. In the calendar year 2025, Nifty Metal rose over 29%, sharply higher than the benchmark Nifty 50, which rose 10.5%.

 

Analysts listed weakness in the dollar index, expectations of interest rate cuts by the US Federal Reserve in 2026, and structural supply contraints for copper amid rising demand as some of the support factors for shares of metal and mining companies. "Metals have come back (in the spotlight) after a very long time. Normally, it is a tactical bet but this time it is a strategic bet as well," founder of the research firm said.

 

The Ministry of Finance Tuesday notified the widely anticipated extension of safeguard duty on import of certain flat steel products at 11-12% till April 2028. Improvement in steel prices after the extension of safeguard duty should drive margin expansion for companies from the March quarter, Kotak Securities Ltd. said in a report Wednesday.

 

TOP HEADLINES

 

* L&T gets 'major' order from SAIL, others for engg projects, products
* Lloyds Metals Apr-Dec prov direct reduced iron output up 22% at 291,099 tn
* APL Apollo Tubes Dec sales volume up 11% YoY to record high of 916,976 tn
* Govt imposes provisional anti-dumping duty on low ash met coke imports
* Hindalco arm AV Minerals buys 5 mln shares of Novelis for $750 mln
* Jindal Steel to double structural steel capacity to 2.4 mtpa at Raigarh unit
* Tata Steel makes submissions on INR 18-billion GST, penalty demand
* Kirloskar Ferrous Ind suspends operations at Jejuri plant for 15 days

 

Following are the resistance and support levels for key metal 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 LTD	925.70	6.10	947.30	885.80
HINDUSTAN COPPER LTD	541.90	13.90	555.60	521.10
HINDUSTAN ZINC LTD	628.80	(-)1.30	640.00	608.70
JINDAL STEEL LTD	1080.30	9.50	1093.70	1058.30
JSW STEEL LTD	1180.70	7.90	1192.80	1163.00
JINDAL STAINLESS LTD	855.40	8.00	873.90	837.70
NATIONAL ALUMINIUM COMPANY LTD	330.30	7.60	341.50	310.10
NMDC LTD	84.53	2.30	85.60	83.30
STEEL AUTHORITY OF INDIA LTD	147.47	11.50	149.80	145.80
TATA STEEL LTD	182.88	8.10	185.00	180.50
VEDANTA LTD	616.95	2.70	627.90	598.20
NIFTY METAL	11421.85	5.70	11535.00	11219.50
NIFTY 50	26328.55	1.10	26483.90	26040.70
BSE SENSEX	85762.01	0.90	86290.60	84804.60

 

End

 

US$1 = INR 90.20

 

Reported by Shakshi Jain

Edited by Tanima Banerjee

 

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