Metal Stocks Outlook for the week – 26 to 30.12.2016
Metal Stocks Outlook for the week – 26 to 30.12.2016
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The major stocks in the mining and metals segment are expected to continue their poor show next week due to lack of positive triggers in the near term. The Nifty Metal index underperformed the broader market this week, falling 4.4% to 2623.10 points. Stocks of most major metal and mining companies were in the red with Hindustan Zinc falling by more than 8% over the week, the highest decline among metal stocks. Shares in the segment will largely depend upon prices of metals on the London Stock Exchange. We expect uncertainty in trading activity coupled with liquidity crunch in the market because of Christmas and New Year holidays ahead. The year-end may see profit booking in the sector. The index is expected to hover around 2518 points. Hindalco Industries remains a prized stock even though it has fallen over 12% since Dec 9. We recommend a 'buy' for the stock once it reaches a support price of 147 rupees. Hindustan Copper has a 'buy' rating with a target price of 66 rupees. Both SAIL and Tata Steel have lost over 5% this week. Pressure on metals and mining stocks is likely if the dollar strengthens against other currencies.
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Metal Stocks Outlook for the week – 26 to 30.12.2016
The major stocks in the mining and metals segment are expected to continue their poor show next week due to lack of positive triggers in the near term. The Nifty Metal index underperformed the broader market this week, falling 4.4% to 2623.10 points. Stocks of most major metal and mining companies were in the red with Hindustan Zinc falling by more than 8% over the week, the highest decline among metal stocks. Shares in the segment will largely depend upon prices of metals on the London Stock Exchange. We expect uncertainty in trading activity coupled with liquidity crunch in the market because of Christmas and New Year holidays ahead. The year-end may see profit booking in the sector. The index is expected to hover around 2518 points. Hindalco Industries remains a prized stock even though it has fallen over 12% since Dec 9. We recommend a 'buy' for the stock once it reaches a support price of 147 rupees. Hindustan Copper has a 'buy' rating with a target price of 66 rupees. Both SAIL and Tata Steel have lost over 5% this week. Pressure on metals and mining stocks is likely if the dollar strengthens against other currencies.
