Vinit Bolinjkar, head of research at Ventura Securities said that Metal stocks are under pressure due to the fresh escalation in attacks in West Asia. The development has impacted every pocket of the market, including metals. Supply chains are likely to be impacted further, deliveries could be delayed, and that is leading to the fall.
Among the top losers from the pack are: National Aluminium Company (NALCO) fell the most, declining 5 per cent to hit ₹352 on the NSE. Vedanta and Hindustan Copper followed, falling over 4 per cent each, while Vedanta Aluminium slipped 4 per cent to ₹420. Tata Steel and JSW Steel declined 3 per cent each.
“In the short term, transportation costs are likely to remain elevated. Any further gain in the dollar will add to the worries. This could lead to a slight slowdown in the metal space in the near term, and overall, the market is expected to head lower,” Bolinjkar said.
Oil prices rose and are on track to end the week at over $100 a barrel for the first time since mid-May. Brent crude futures surged 0.42 per cent to $108.1 a barrel, while US West Texas Intermediate climbed 0.33 per cent to $102.8.
Also Read
Vipin Kumar, AVP research at Globe Capital Market said that the Nifty Metal index has been going through a short-term consolidation phase (12,800–13,600 zone) within a constructive chart structure. Going forward, we expect it to spend some more time within this consolidation phase. “Considering the current chart structure, we advise traders to accumulate quality metal stocks on dips around the lower band support and price swing lows of the Metal index in the 12,400–12,800 zone. A decisive break above the 13,600–13,800 zone will push the index into uncharted territory,” he added.
Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.
