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Stocks of major steel companies are seen in a range in the coming sessions despite a rise in raw material prices as continued weakness in demand for the alloy may nullify the impact of the price rise. Overall, we do not see any big movement as steel demand continues to remain weak in the domestic (market). Low domestic demand for steel has increased supply of the alloy as most producers have not reduced their plant capacity utilisation. The consequent imbalance in demand-supply scenario continues to weigh on steel companies to some extent. Technically, steel companies are seen performing better in coming sessions. SAIL is expected to find support at 80 rupees and face resistance at 86 rupees next week. JSW Steel may trade in 745-775 rupees range. There seems to be uncertainty in the JSW Steel stock. It is mainly because of lower availability of iron ore for the company's plant in Karnataka. We are currently working in an environment where more mines of category 'A' need to be operational in Karnataka, category 'B' mines (in Karnataka) are not open at all and NMDC has lowered it(s) iron ore production. Tata Steel is likely to find support at 388 rupees and face resistance at 410 rupees.
