Time to bet on metal stocks now: Rohit Srivastava

economictimes.indiatimes.com:

Rohit Srivastava, Founder & Market Strategist, Indiacharts.com, says he would take a slightly contrary stance and move to the metal side. It is not a sector that everybody likes too much but the metal index has kept coming under pressure because of what has been happening in the dollar and rates but the Indian metal stocks have done much better during this phase despite low commodity prices and that is a positive sign. If we are at the fag end of the rally in the dollar, then it is time for commodity prices to pick up again and the metals pack to start outperforming significantly. I would move into the metal sector.”


What is your own assessment? Do you think the dips will be bought into or do you see the slide continuing?
It is a slightly tricky situation. We are going to be watching these key levels that I should probably put out. On Bank Nifty, we are going to watch around 43,780 and on the Nifty, around 19,640. If these levels break, then there is a chance that we continue to slip into the red and see the slide continue. But if these levels hold, then the continuation should be on the upside and well, Bank Nifty has actually not moved up much, so in that sense Bank Nifty is coming back to this particular zone almost the third or fourth time since August.

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So, it took support there, it rallied in September, it has come back to that level and it has really not moved. The Nifty has moved up a bit from the lows, it is holding above the 20-day average and that is what we