Wednesday, April 29, 2009

Missing !

I was away from the blog for two days, deptived of the excellent comments that come after each post. I hope to resume my posts, starting now.

Sector Watch : Steel

The World Steel Association forecast on Monday that steel demand would tumble 15 percent in 2009, its steepest fall since World War Two, and one exacerbated by consumer destocking. Arcelor Mittal, the world's largest steel producer, announced results that had larger losses than expected. American producer, US Steel reported Q1 2009 results that were significantly below market expectations. The company said it also expected a loss in Q2 and that it was difficult to forecast further out.

Now, Tata Steel has reacted to the gloom in Steel, seeing its price fall from 299 to 238 in 15 trading days. This also tells us that the Indian markets are coupled with international markets. Steel, then is no longer a 'buy on dips' candidate. It should normally be a 'sell', but we are seeing strong upside momentum in the market, so we should avoid going short, just stay away.


The Nifty remains inside a trading range between 3350 and 3500. After all the intra day action of going down, then going up, we are still inside the range. With four days of holidays, anything can happen when the markets open on Monday.

1 comment:

men said...

Most analysts are saying that if 3520 is taken out then 3800 is possible, now how is one to trade this range, is it a buy and sell or sell and buy? Personally I would sell at high's and buy back only if I would be in profit. Kindly give your method of trading in this range.
Finally what would confirm a break below 3300 and how does one react around 3320, because many a time market bounces back from supports.
Sudhin Bathija