NCDEX steel long October contract is trading at Rs 29560, down Rs 70 for the day.
-Steel is expected to remain weak until the real estate sector gets a boost. This would require money flows into the sector and lower interest rates from the RBI, both of which look unlikely to happen in the short term.
-JSW Steel has meanwhile stated that its Vijaynagar plant in Karnataka may be shut down if the Iron Ore supply issue is not sorted out. The Vijaynagar plant produces 10 million tonnes out of JSW’s total production capacity of 14.3 million tonnes.
Technical target by Geojit Comtrade
NCDEX Steel Long October: Sell below Rs 29500 targeting Rs 29100 with stop loss above Rs 29800.
S1: 29300 S2: 29000 R1: 29800 R2: 30300.
