Metal Stocks Outlook for the week – 13 to 17.04.2015
Stocks
of metal companies are seen declining in the coming sessions on a likely
retracement after a week of gains that saw the CNX metal index closing up 5.7%
at 2483 points. The metals sector has been underperforming, and while the
short-term trend might've been positive, retracement will most likely take
place anytime now.
The
sector has been volatile of late due to the second round of the coal block
auctions that concluded recently. Also, cases and counter cases being played
out in various courts have caused unpredictable movements in shares of Jindal
Steel and Power and JSW Steel.
Stocks
of the Steel Authority of India saw some movement after rating agency Fitch
downgraded the stock.
Next
week, metal stocks are likely to be in for correction in the absence of clear
positive cues. The sector is very weak at present, and there isn't really
anything to push the stocks up. The current rally is the stocks seem
short-lived and a correction is now due.
Metal
stocks are also likely to take cues from the production numbers detailed by
Vedanta today.
The
company reported an overall rise of about 10%. Next week, shares of Hindalco
Industries are likely to retrace gains made this week.
