NMDC stock falls 5 per cent on fall in iron ore prices Should you buy, sell or hold?

According to stock market experts, the fall in NMDC shares The main reason for this is the fall in iron ore prices. He said it is a commodity stock and may go down even further 120 to 35 levels. However, he added that it will be a good buying area for accumulators and new buyers as iron ore prices are expected to rise in the near future.

Highlighting the reasons for the fall in share price of NMDC; Ravi Singhal, Vice Chairman, GCL Securities said, “NMDC is a commodity stock and it consumes a good amount of iron ore as raw material. This is the main reason for the fall in share price.Iron ore prices are expected to remain under pressure for few more sessions and hence NMDC shares may go further lower than the current ones 145 odd levels. However, once the iron ore price starts to regain its lost ground, the stock will rally sharply.”

Resonating with the thoughts of Ravi Singhal; Anuj Gupta, Vice President, IIFL Securities said, from 125 135 would be a good buying area for NMDC shares. Hence, holders of NMDC shares are advised to accumulate in this area, while new buyers are advised to buy by maintaining stop loss in this area. 119 each level. IT may soon bounce back 175 levels. However, after buying from 125 135 zone, one can hold counter to medium term target of 210 too.”

Adding to its sharp losses on Monday, future iron ore prices fell nearly 10 per cent today as traders charged the commodity amid fears of a Chinese hegemony as Beijing warned it would spread misinformation on prices. will take action against The most traded iron ore for May delivery fell 9.7 per cent to 701 yuan ($110.35) a tonne on China’s Dalian Commodity Exchange, its weakest since January 18.

Iron ore futures for March contract fell 11.4 per cent to $131.55 a tonne on the Singapore Exchange.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.