Copper, zinc, and nickel have been rallying for the last 8 months as a broad-based weakening of the dollar made commodities cheaper for holders of other currencies. Besides, supply constraints from the pandemic-hit Latin American nations provided support to the metals, the report added quoting brokerages.
Here's how Nifty Metal index and select metal stocks look on charts.
After successfully conquering the 100-weekly moving average (WMA) at 2,500 mark, the index is set to move towards 200-WMA, which comes at 2,969 levels, as per the weekly chart. This move has a support of 2,600 on the downside. The trend is highly positive with the Relative Strength Index (RSI) witnessing buying momentum in an overbought condition, as per the daily chart. CLICK HERE FOR THE CHART
Tata Steel Ltd (TATASTEEL):
The counter is well placed above the breakout of 200-WMA. This indicates a stable upside ahead. With RSI entering an overbought condition, the stock price is not showcasing any major weakness. The Moving Average Convergence Divergence (MACD) is strongly rising in an upward direction suggesting strong underneath momentum. Till the counter trades above Rs 500, which it seems to defend proactively, the rally may see an upside towards Rs 560 and Rs 576 levels. CLICK HERE FOR THE CHART
Vedanta Ltd (VEDL):
There is a clear resistance of 100-WMA currently placed at Rs 123.50 levels, as per the daily chart. Last time, when the stock scaled toward the same average, the selling pressure resulted in a correction towards Rs 84 levels. However, till the counter defends the support of Rs 101, upside bias seems legit. The MACD is resilient to breach the zero line downward, which means the corrective moves may see buying momentum. CLICK HERE FOR THE CHART
Steel Authority of India Ltd (SAIL):
With a breakout above the 100-WMA, the counter is set to rally higher levels towards Rs 50. This move is supported by MACD, which is trading with a strong positive crossover above the zero line. The support comes in at Rs 39 and Rs 37 levels. The RSI has crossed the 55 value firmly, suggesting the stock will scale higher levels in the near future, as per the weekly chart. CLICK HERE FOR THE CHART
JSW Steel Ltd (JSWSTEEL):
The counter is trading with “Higher High, Higher low” formation and till the stock does not breach the earlier high level, which comes in at Rs 327, the upside bias may see Rs 360 and Rs 373 levels. The volumes have been sluggish lately. This may show less interest of market participants. However, till the stock manages to hold upside bias, the near sessions may see added interest with high volumes. CLICK HERE FOR THE CHART