GOLDEN RULES FOR TRADING

Metal Stocks Outlook for the week – 05 to 09.Oct.2015 (Selling pressure to continue next week)

Metal Stocks Outlook for the week – 05 to 09.Oct.2015
(Selling pressure to continue next week)
  www.rupeedesk.in )

Selling pressure on shares of major metals and mining companies is likely to continue next week on concerns over falling global commodity prices.

We do not see any near-term reversal in the CNX metal index, which has been underperforming in the past one year. However, we expect a bounce back post consecutive sessions of downward correction in the current week.

There could be a rally if steel companies raise product prices. If there is no hike, they (stocks of metal and mining companies) will start falling. The market is anticipating a hike in select steel product prices after the government imposed a 20% provisional safeguard duty on hot-rolled coils in a bid to curb cheap imports from countries like China and Russia.

The metals and mining sector, however, will continue to remain volatile till commodity prices stabilise. Prices are seen stabilising when commodity oversupply reduces and there is a demand-supply match.