Not too negative on metals from curent levels: Paras Adenwala

Paras Adenwala, MD & Principal Portfolio Manager, Capital Portfolio Advisors in an interview with ET Now talks about metals.

The kind of spectacular run-up that the metals have shown in today’s trade obviously, the news is backing it, but still the kind of momentum in today’s trade is sustainable going forward and do you think that possibly today is just the breakout day, beyond which the metals will see a substantial run-up as well?

The metal sector witnessed a situation of being oversold because they have been on a receiving spree for a long time and what it needed was just a trigger for these oversold positions to get covered up.

So, it is not only investment buying but also these positions being covered up is what we are witnessing today thanks to whatever has happened in China, so they will reach the normal levels before the next upmove starts based on fundamentals. I would not be too negative on metals from the current levels.