The Nifty Metal index can rally up to 11 per cent following the breakout. Among individual stocks, Tata Steel needs to conquer its 200-DMA to gain strength.
Sensex has shrunk 1,372 points or 2.29 per cent to 59,015 and Nifty50 shed 425 points or 2.3 per cent to 17,561 so far from their recent highs
Until major hurdles are not conquered by Metal index, the turnaround scenario may fade sooner
Host of sectors pushing up need for metals; capital outlay significant by firms, say experts
Fall comes on the back of the govt's decision to impose export duty on steel in a bid to cool off domestic prices
The government levied export duty on 11 iron and steel intermediates and key steel products.
Analysts are now taking note of a few developments that could lead to demand reduction; Nifty Metals Index, with 2.85% fall on Monday was the top loser among sectoral indices
While Nifty Metal index is just 140 points short of a new historic peak, Vedanta shares gracefully achieved it today
The Nifty Metal index can clock a new high, if it manages to cross and sustain above the 6,000-mark.
Metal and mining firms expected to lead earnings growth
Analysts said the inflationary pressure seen by companies such as HUL and Nestle India have made the Street temper down its earnings growth expectations
Demand-supply scenario is favourable and should keep prices elevated
The Nifty Metal index surpassed its previous high of 6,079.55 on October 14, 2021.
The index was quoting lower for the third straight trading day, falling 7 per cent during the period
Metal markets were roiled in selloff on concerns over Chinese steel production, global growth risks and the prospect of reduced US stimulus
Technical analysts say the market remains in an uptrend as the index has managed to find support at its 50-day moving average
Global commodity selloff drags BSE Metal index 7% during the week, most since May 2020
The uptick in metal prices augurs well for domestic metal companies as it would have a positive rub-off on their financial performance, going forward
With the latest overhang on the outlook, and after a sharp run-up, can metal stocks surprise with more returns? Tune in to learn more
With today's decline, the S&P BSE Metal index has now corrected 10 per cent from its record high level of 20,429, touched on May 11, 2021