GOLDEN RULES FOR TRADING

Metal Stocks Outlook for the week – 24 to 28.08.2015 Seen range bound with a positive bias

Metal Stocks Outlook for the week – 24 to 28.08.2015
Seen range bound with a positive bias

Stocks of major metals and mining companies are seen trading in a range with a positive bias next week. There are also possibilities of some bounce back in the sector. The bounce back will, however, be temporary and analysts see a downward correction in near future. The CNX metal index has fallen 13% since Aug 1. Any uptick until 1,900 (points) should be utilised as shorting opportunity.

The worst is yet to come for the metals and mining sector. We attribute it to the sustained fall in
global commodity prices during the last one year. Depreciation of Chinese currency Yuan may lead to a rise in exports from the country and would suppress demand for Indian metals, adding to the woes of the ailing sector.