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Informist, Friday, Mar. 6, 2026

MUMBAI – Aluminium stocks are likely to rise in the near term as there are expectations of an increase in the price of the base metal amid supply chain disruptions due to hostilities in West Asia. Some technical analysts expect metal stocks in general to rise as traders are likely to adopt a buy-on-dips strategy. Steel stocks are likely to rise with steel prices increasing and demand improving. However, the rise is likely to be limited by high valuations. 

"In the ferrous space, we don't foresee any major impact due to ongoing geopolitical tensions as exports share of total steel production is pegged at less than 6%," ICICI Direct said in a strategy report. There could be minor trade disruptions, but they are not expected to make any meaningful impact on domestic players, the brokerage said.

Demand in the domestic steel market improved sequentially in February, analysts said. During the month, Indian steel prices rose 1% on month to INR 54,000 per tonne, remaining at a 52-week-high on seasonal tailwinds. "Domestically, following the announcement of safeguard duty, steel mills have announced price hikes, resulting in higher HRC (hot rolled coil steel) prices despite demand slowdown in some regions," IDBI Capital said in a report. 

West Asia accounts for 8% of global aluminium production and so any disruption of supplies from that region has the potential to push up prices on the London Metal Exchange, which will benefit primary producers such as Hindalco Industries and Vedanta. This week, Hindalco Industries rose 4% even as the Nifty 50 fell nearly 3%.

"Looking forward, we expect it (metal stocks) to continue its upwards journey in the near term; hence, we suggest traders maintain a buy-on-dips trading approach in this space," Vipin Kumaar, assistant vice-president, technical and derivatives, at Globe Capital Market, said. "Immediate resistance for the coming week is placed around 12500 levels and support is around 11200 levels," Kumaar said.

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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:

End

Reported by Gopika Balasubramanium

Edited by Rajeev Pai

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