Metal Stocks Continue To Decline; ‘Sell' Rating On Tata Steel Weighs On The Scrip

In the previous session too, metal index saw profit booking and amid weak global cues when headline indices saw correction for the second straight day today, Nifty is down 0.33 percent while Sensex is down by 0.17 percent. Meanwhile, Nifty Bank has declined by 0.6 percent.

Metal Stocks Continue To Decline; ‘Sell' Rating On Tata Steel Weighs On The Scri

Among sectoral indices, while major sectors are down, there is buying seen just in the IT and FMCG counters. Nonetheless, the most weakness is suffered by metal pack, which at the time of writing this copy was down by 3 percent.

Of the 15 constituents, Tata Steel, NMDC, Jindal Steel, JSW Steel and Vedanta saw weakness between 3- 4 percent, while other stocks such as Ratnamani Metals, Hindustan Zinc, NALCO and SAIL declined in share price in the range of 1 to over 2 percent.

The subsidiaries of JSW Steel as well as Tata Steel are increasing capacity in tinplate owing to increase in out-of-home consumption.

Angel Broking in view of the consolidation in the scrip of Tata Steel has suggested a 'Sell' on Tata Steel seeing a target price of Rs. 1330, i.e. a downside of 4 percent from the price of Rs. 1385.9. This stock has confirmed a trendline breakdown from its key support of Rs 1,390 on a closing basis.Traders can look to short this counter on a small bounce for a short-term target of Rs 1,330. The stop loss can be placed at Rs 1,442", adds the brokerage firm.

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