Metal stocks rally up to 8% amid reports of steel price hike

Shares of metal companies such as Jindal Steel, National Aluminium Company, and Tata Steel rallied up to 8% amid reports that Indian steel mills are eyeing price hikes in January on the back of improved global cues and the firming up of international prices.

Shares of Hindalco, SAIL, Vedanta, Hindustan Copper, and JSW Steel also rose over 3%.

At 1.13 pm, shares of Tata Steel were trading 4.6% higher at Rs 109.8 over its last day’s closing price of Rs 105/share. The stock surged nearly 27% in the last six months, while it has plunged about 4% year to date (YTD).

As per Trendlyne data, the highest target price for Tata Steel goes up to Rs 180, while the average target price estimate is Rs 118, an upside potential of 8% from the current market price of Rs 109. Out of the 28 analysts covering the stock, 17 have strong buy and buy ratings, seven have hold ratings and four have strong sell and sell ratings.

Technically, Tata Steel is trading above 7 out of 8 SMAs. Shares of Jindal Steel were trading 7% higher at Rs 565 over its previous day's closing price of Rs 527.7 per share. The stock has risen about 75% in the last six months, while it has surged around 46% YTD.

However, as per Trendlyne data, the highest target price for Jindal Steel goes up to Rs 730, while the average target price estimate is Rs 510, a downside of 10% from the current market price of Rs 109. Out of the 23 analysts covering the stock, 15 have strong buy and buy ratings, two have hold ratings, and six have strong sell and sell ratings.

Technically, Jindal Steel & Power is trading above 8 out of 8 SMAs.

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