Vedanta, NMDC, MMTC, Tata Steel, SAIL: Metal stocks are rallying in today’s trade (December 31) due to firm prices and an improving demand outlook. Sentiment
also got a boost after the government announced a three-year import tariff or safeguard duty of 12 per cent on steel products, aimed at protecting domestic steelmakers. The duty will, however, not apply to imports from certain developing countries, but imports from China, Vietnam and Nepal will attract the levy, which further supported the rally in metal counters. Post this news, metal stocks surged by as much as 6 per cent in today’s session. The Nifty Metal index jumped 2 per cent hit a record high of 11,216.05. Individually, SAIL emerged as the top gainer as it climbed 5.45 per cent to trade at Rs 148.70 around 1:45 PM. JSW Steel also saw strong buying interest and rose 4.80 per cent to Rs 1,164. Jindal Steel, Tata Steel and Lloyds Metals gained between 2 and 4 per cent during the same period. Overall, the sector witnessed broad-based buying interest. Speaking to ET NOW, market expert Kunal Bothra said the metal sector has emerged as one of the best performing sectors in December, with the Nifty Metal index rising nearly 8 per cent during the month. He said that several metal stocks have returned to their lifetime high levels, indicating strong momentum across the metal space. Bothra said that the rally, which was earlier limited to a few select names in the metal, is now becoming broader. "Earlier, the rally was restricted towards very few metal stocks. Vidanta was one of the few names which was looking attractive. Hindustan Zinc, Hidnalco, JSPL, Tata Steel, JSW Steel are buzzing for the last couple of trading sessions. So the mix is getting a lot more better for the entire metal index, which is a positive sign for the sector going forward," he said. Meanwhile, ET NOW Swadesh panelists have shared their views on metal stocks for short to medium term. Let's take a look at their commentary and targets below:
Vedanta Share Price Target
Rajesh Palviya, SVP – Research at Axis Direct, has recommended buying Vedanta shares from the metal space. He said the stock is showing a series of higher tops and higher bottoms on the charts, which indicates a strong bullish trend. According to Rajesh, the current buying momentum in Vedanta could continue in the near term and he expects the stock to move towards the level of Rs 625. He has advised keeping a stop loss at Rs 595 to manage risk effectively.
NMDC Share Price Target
Laxmikant Shukla, Technical Research Analyst at YES Securities, said that NMDC shares are in an uptrend after a decisive breakout above the Rs 79. He said that NMDC is looking attractive around the Rs 83-84, adding that the risk-reward ratio is favourable. Based on the recent price action, he said that NMDC can be a good buy for short term. He has set a target of Rs 90 on NMDC shares. Maintain stop loss at Rs 80.
Rupak De, Senior Technical Analyst at LKP Securities, has also recommended NMDC as his positional pick. He pointed out that NMDC has given a breakout on the monthly chart, which signals strength in the stock. According to him, NMDC is well placed to move northward in the short to medium term. The analyst has recommended buying NMDC shares for a target price of Rs 100. Maintain stop loss at Rs 73.
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SAIL Share Price Target
Amar Deo Singh, Senior Vice President at Angel One, has a buy recommendation on Steel Authority of India Limited (SAIL). He said SAIL shares are actively participating in the ongoing rally in the metal sector after a long phase of consolidation. Singh has set a target price of Rs 153 for SAIL shares. He has suggested traders to keep a stop loss at Rs 133–134.
The analyst had recommended SAIL shares around Rs 142 during the closing show on December 30.
MMTC Share Price
Ruchit Jain, Vice President of Equity Technical Research at Motilal Oswal, said that MMTC is a high-beta stock. He noted that MMTC shares surged sharply from Rs 58 to Rs 72 in just two trading sessions on Friday and Monday. He said that a strong resistance is placed at Rs 74. If MMTC manages to break above this level, a big move can be expected. Otherwise, the stock may continue to witness volatile movements within the range of Rs 60 to Rs 74.
Tata Steel Share Price Target
Ruchit Jain also commented on Tata Steel, stating that the entire metal sector has been buzzing over the past few trading sessions. The rally in metal stocks is supported by strong volumes. He said Tata Steel has bounced back after taking support near its 200-day moving average and is forming a higher top, higher bottom pattern. According to Jain, Tata Steel could be a good buy in the near term. He has set a target of Rs 185 and advised maintaining stop loss at Rs 175.
The stock was recommended by Ruchit Jain around Rs 175 during the closing show on December 30.
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(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
