Metal stocks look weak; may fall further: Kulkarni

Shardul Kulkarni of Angel Broking is of the view that, the overall trend for all metal counters is looking weak so one should wait to invest in case of metal stocks.

Kulkarni told CNBC-TV18, "Looking at the BSE metal index – 10,200 is the crucial support that was broken in last week and after that we have seen a continuous fall in case of metal counters. Going forward we may see that the US dollar index may strengthen. If the US dollar index strengthen we will see metal counters even moving lower even from current levels." He further added, "I would not be bullish in case of any of the metal counters although the hourly as well as two hour chart specially show that there is a positive divergence in case of metal counters. But that would not be good enough reason to actually buy into them. Definitely we may see some bit of a pullback so I would not rule out that a Rs 72-Rs 73 Steel Authority of India cannot move to Rs 76-Rs 77 that is possible." "The overall trend for all metal counters looks weak and going forward we should be waiting even if we want to invest in case of these stocks. We may see much lower levels in case of metals." Disclosures: Yes it is possible that we have positions in the stocks discussed and we have recommended them to our clients.