Steel stcoks on downtrend: Rajat Bose

Rajat Bose, rajatkbose.com, talks to ET Now on steel stocks.

What is your word on metal stocks, particularly on steel?

If we look at steel, say Steel Authority, it started from a level of close to around 100 and then it has started moving down again. The medium-term moving averages like 50-day, 100-day as well as 200-day, they are all sliding down.

Only the short-term moving averages were looking up but now if it were to fall below 115, which it already has. Steel Authority is likely to go down and retest the lower levels.

Then another metal counter, which is also seeing some sell off today is Sterlite. Sterlite already, yesterday, indicated the kind of weakness because it closed near the day's low yesterday and today also this is showing supply pressure if it were to fall below 130 and sustain there, then it would also retest the lower levels.

JSW Steel, Tata Steel, all are looking pretty weak. In fact I am really apprehensive whether this rally would really sustain or not because at a critical resistance level, the bulls are not having enough firepower to push the market.