MUMBAI (Commodity Online): India Steel continued its weakness on Tuesday as NCDEX prices fell by 0.71% in afternoon trade.
NCDEX Steel long October contract is currently trading at Rs 29620, down Rs 210 for day.
RBI recently hiked interest rates by 25 basis points as August inflation rose to 9.78%. This interest rate hike is expected to hit the demand for steel long from its biggest consumer-the construction sector.
As such, prospects for Steel long remain bleak. With the real estate industry facing a credit crunch, the additional rate hike will only compound the difficulties.
Technical target by Geojit Comtrade
NCDEX Steel Long October: Sell below Rs 29700 targeting Rs 29300 with stop/loss above Rs 30100.
S1: 29300 S2: 29000 R1: 30100 R2: 30300.
