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Informist, Friday, May 8, 2026

MUMBAI – While fundamental analysts expect the rally in metal stocks to continue on the back of strong earnings visibility, technical analysts expect the stocks to fall in the near term as traders would look to sell for profit on every rise. However, an increase in coking coal prices in Apr-Jun will be monitored as it may hit the performance of steel companies, according to fundamental analysts. That said, steel makers are expected to benefit from a fall in imports due to disruption in sea routes and rising freight charges.

"Valuations are justified as there are two quarters of visibility in earnings growth and investors would want to buy metal stocks," a senior analyst in a financial services company said. "Further, mild El Nino is a positive for steel, as there would not be any moderation in infrastructure activity and the demand would sustain for few more months." The El Nino climate pattern usually results in reduced rainfall in the Indian subcontinent during the southwest monsoon season. 

However, steel prices have moderated on a weekly basis amid softer demand owing to elections in some states and labour shortages causing a slowdown in construction activity, analysts said. While some analysts expect the infrastructure activity to continue with the normal pace of government spending, others expect the government's capital expenditure to taper because of the continuing war in West Asia. Indian hot-rolled coil steel prices decreased 1.0% on week to INR 57,800 per tonne, as per a report by IDBI Capital Markets & Securities.

Friday, the Nifty Metal index ended at 13050.95 points, down around 1%. The index had hit an all-time high of 13256.2 points Thursday. "I am expecting some more correction in Nifty Metal from here. Smart money and institutions are booking profits on every rise," Bhavya Shah, derivatives and technical analyst at StoxBox, said. Vipin Kumaar, assistant vice-president, technical and derivatives, at Globe Capital Market also said the possibility of profit-taking cannot be ruled out for the Nifty Metal. "Consequently, we suggest traders wait for a dip before adding fresh long positions," he said. For next week, support for the metal index is at 12500 points and the resistance is seen at 13300 points.     

TOP HEADLINES

* JSW Steel's board to mull raising long-term funds via QIP, NCDs, others Thu
* Hind Copper board to meet May 15, mull raising up to INR 5 bln via debt
* Kirloskar Ferrous Jan-Mar consol PAT rises 33.3% YoY to INR 1.23 billion
* SC rejects tax dept's plea for addition to Mahamaya Steel's income
* Adani Ent files caveat in SC, expecting plea vs Jaiprakash Associates bid
* Shyam Metalics Apr stainless steel, aluminium foil sales, realisation up YoY
* L&T's minerals, metals vertical gets 'mega' order from JSW Steel
* Gallantt Ispat Jan-Mar net profit rises 6% on year, revenue up 12%
* Lloyds Metals and Energy consol PAT surges manifold YoY in Jan-Mar
* Shankara Building posts INR 73.5 mln consol PAT in Jan-Mar vs loss yr ago
* Earnings Review:Jindal Stainless PAT dn on low volume, but meets Street view
* Hindustan Zinc CFO Sandeep Modi resigns, effective May 30
* SG Mart Jan-Mar consol PAT rises 25% YoY to INR 414.7 million
* Analyst Concall: APL Apollo hopeful of higher dividends in FY27
* Lloyds Metals commissions 4 mtpa pellet plant at Konsari, Maharashtra
* NCLAT rejects Vedanta plea vs Adani Ent's IBC plan for Jaiprakash Associates
* Earnings Outlook: Jindal Stainless Q4 PAT seen rising despite weak volumes
* Earnings Review: APL Apollo posts record PAT, EBITDA, volume in Q4
* Analyst Concall: Jindal Steel targetting 10.5-11.0 mln tn sales for FY27
* Analyst Concall: Jindal Steel targets 10.5-11 million tonnes sales for FY27
* Earnings Review: Jindal Steel back in black from yr ago; revenue up 23% YoY
* Hind Zinc gets SEBI warning letter for non-compliance with disclosure norms
* Analyst Concall: NALCO FY27 capex seen at up to INR 20 bln; FY28 INR 50 bln
* IPO Alert: RK Steel gets SEBI nod for fresh issue of up to 20 mln shares
* Earnings Review: Adani Ent posts net loss in Q4 vs PAT yr ago as costs rise
* Earnings Review: NALCO Jan-Mar PAT down 17% on yr,  total expenses jump 10%
 

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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