Informist, Friday, Jul 21, 2023
MUMBAI – Shares of metal companies are expected to gain next week as JSW Steel’s better-than-expected earnings for Apr-Jun are likely to boost optimism towards other stocks in the sector, analysts said.
While JSW Steel’s consolidated net profit for Apr-Jun fell 36% on quarter to 23.38 bln rupees, it surpassed the average bottomline estimate of 12.28 bln rupees. The consolidated revenue from operations fell 10% sequentially to 422.13 bln rupees, also higher than expectations of 412.3 bln rupees.
The momentum in the metal index was paused this week, but the overall outlook for the sector remains positive, said Jay Vora, senior technical and derivatives analyst at Indiacharts.com. The index will move higher if it closes above 6555 points, and will move towards its all-time high of 6919.6 points, Vora said.
The Nifty Metal index ended 0.7% lower at 6442.30 points today. The index snapped a three-week gaining streak to end the week with 0.4% losses.
Vora said the metal index has major support at 6320 points, which is also its 20-day moving average.
Shares of Hindustan Zinc will be in focus on Monday as the company’s Apr-Jun consolidated net profit fell to 19.64 bln rupees from 30.92 bln rupees a year ago. The company’s topline declined 22% year-on-year to 75.64 bln rupees.
Vedanta’s stock will also be in focus on Monday as the company’s June quarter earnings are due today. Tata Steel will report its Apr-Jun earnings on Monday.
Stocks in the sector are also likely to take cues from global marketsm with the US Federal Reserve’s monetary policy decision due on Wednesday.
TOP HEADLINES
* Earnings Review: JSW Steel beats estimates for Apr-Jun net, sales
* Earnings Review: JSW Steel beats estimates for Apr-Jun net, sales
* LIC reduces stake in Hindustan Copper to 10.25% from 12.32%
* Jindal Stainless buys stake in Jindal United Steel for 9.6 bln rupees
* Committed to building India’s 1st fab unit in Dholera, says Vedanta
Following are the resistance and support levels for the sector’s key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Padmini Dhruvaraj
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Source: Cogencis
