Read more about Nifty outlook & stock picks by Vinay Rajani: Buy Ashok Leyland, Tata Steel on Business Standard. The Nifty50 has recovered more than 62 per cent of the entire fall which was registered from 14,653 to 14,222
Edelweiss retained their positive stance on ferrous with Tata Steel with a target price of Rs 750 and is their top pick in the Metal space. Domestic HRC (Hardness Rockwell C) prices increased a further Rs 2,750/t (5%) on average compared to previous week. Regional prices were stable owing to thin trade volumes during New Year holidays, though CIS price rose a further USD 18/t (2%) compared to previous week. At current level, domestic prices are at 6% premium to imports from South Korea, but we do not envisage threat from imports as lead times are well into Q2 CY21. That said, price momentum could cease if Chinese export price continues to remain weak; Edelweiss will keep a close tab on the same.