Friday, 24 February 2017

Commodity-Metals Shares-Are They Breaking Out?

Metals have seen their last highs in mid 2010,Though nifty has rallied to life time highs,metal scrips could not break out upside.
They might have come up with nifty,but I don't call it as a rally.

Copper has been continuously cracking from 600 levels to odd 200 levels till last year,from mid march the stage seems to be set with global rise in demand for copper/aluminium. copper has surged from 280 odd levels to 400 plus in last three has been consolidating and continuously trapping bears.While writing this post it stands tad above 400.Coming back to our metal scrips,they have taken positive momentum from global commodities and seems to be ready for a break out.With IT,PHARMA sectors loosing steam,metals seems to be taking charging of niftys rally towards 9000 levels.

Vedanta-from the merger of sesagoa with sterlite industries,everybody expected this scrip would be a mutibagger,however it fell to the levels of 70 in feb 2016 before seeing steady rise,however it has broke 2015 high of 235 levels and sitting comfortably above 250 levels.This scrip has seen good volumes of buying lately.

Another under rated scrip in this sector is Hindalco,with due respects to the fact that this company hasn't given returns to investors,but charts show positive momentum,a breakout above 190 levels can attract further buying,this scrip can be kept on radar,and can be accumulated on dips.

Nmdc,Hind zinc,jsw steel also look good as per valuations,but they don't actually see aggressive movements in one direction.But they are all worth watching going ahead.