Metal Stocks Outlook for the week – 02 to 05.05.2017
Metal Stocks Outlook for the week – 02 to 05.05.2017
( www.rupeedesk.in )
Stocks of metal and mining companies are seen gaining next week due to a positive trend on technical
charts, and as these stocks try and catch up with gains made by the broader market. Most stocks have
given negative-to-flat returns this week, even as the benchmark Nifty 50 and Sensex tested lifetime highs, and gained 2% each to see their best week in six weeks. A holiday-truncated week may prompt buying as shares of metal and mining companies now look cheaper when compared to benchmark indices. Markets will remain shut on Monday for Maharashtra Day. Fundamentally, prices of base metal prices globally will be the trigger for this high-beta sector. Base metal prices have been on an uptrend in the last few sessions. On technical charts, shares of Vedanta are seen extending gains after brief consolidation. The stock which closed 5% higher this week is seen rising another 6-7% in a couple of weeks. Vedanta stock price have gained 13% so far this year, and 144% in 52 weeks. Stock of Hindalco Industries are also seen positive, and may rise up to 210-220 rupees in the near term. Stocks of steel companies, which have largely been under pressure this week, are seen faring no better
next week. High raw material costs, coupled with a low-demand environment are likely to keep buying
subdued in these shares. These stocks also lack signs of a build up of long positions, and there are very little signs of accumulation in these stocks.
Source : Cogencis Information Services Ltd.
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Metal Stocks Outlook for the week – 02 to 05.05.2017
( www.rupeedesk.in )
Stocks of metal and mining companies are seen gaining next week due to a positive trend on technical
charts, and as these stocks try and catch up with gains made by the broader market. Most stocks have
given negative-to-flat returns this week, even as the benchmark Nifty 50 and Sensex tested lifetime highs, and gained 2% each to see their best week in six weeks. A holiday-truncated week may prompt buying as shares of metal and mining companies now look cheaper when compared to benchmark indices. Markets will remain shut on Monday for Maharashtra Day. Fundamentally, prices of base metal prices globally will be the trigger for this high-beta sector. Base metal prices have been on an uptrend in the last few sessions. On technical charts, shares of Vedanta are seen extending gains after brief consolidation. The stock which closed 5% higher this week is seen rising another 6-7% in a couple of weeks. Vedanta stock price have gained 13% so far this year, and 144% in 52 weeks. Stock of Hindalco Industries are also seen positive, and may rise up to 210-220 rupees in the near term. Stocks of steel companies, which have largely been under pressure this week, are seen faring no better
next week. High raw material costs, coupled with a low-demand environment are likely to keep buying
subdued in these shares. These stocks also lack signs of a build up of long positions, and there are very little signs of accumulation in these stocks.
Source : Cogencis Information Services Ltd.
