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Chart check: Here's how metal stocks have fared at the bourses

Thus far in the calendar year 2019 (CY19), most metal counters have performed poorly at the bourses. While the benchmark Nifty50 index has gained around 10 per cent, shares of metal companies such as Nalco, SAIL, Hindustan Zinc, Vedanta, and Tata Steel have tumbled up to 30 per cent during the period. Nifty Metal index has slipped over 17 per cent.

Here's a look at how Nifty Metal index and its key constituents look on technical charts:

NIFTY METAL: The index has formed “Double Bottom” pattern on the weekly chart with Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) trading with a positive crossover. RSI is trading at the value of 50. MACD has been trading below signal line. The volume at the breakout level is higher than the last 90 weekly sessions. The 50-weekly moving average (WMA) trades at Rs 2,780 levels. CLICK HERE FOR THE CHART

Tata Steel Ltd (TATASTEEL): The counter has witnessed “Death Cross” pattern on the weekly chart but RSI and MACD are trading with a positive crossover. A major rally was seen above Rs 380 as per the daily chart. Although it did manage to cross 100-DMA placed at Rs 403, it strongly failed to confirm the upside momentum. Its recent peak stands at Rs 421.70, which the stock hit after crossing selling pressure around Rs 400 level. CLICK HERE FOR THE CHART

Vedanta Ltd (VEDL): The counter has faced resistance at 200-day moving average (DMA) placed at Rs 162.90. The RSI has reached a negative crossover with MACD turning downward, as per the daily chart. The 50 DMA is located at Rs 148.30. The counter has witnessed ordinary volumes with a mixed trend. The weekly chart has a “Death Cross” formation with 50 WMA placed at Rs 166 levels. CLICK HERE FOR THE CHART

Jindal Steel & Power (JINDALSTEL): The stock has crossed 200 WMA and 50 WMA with strong volumes. A huge surge in price was the outcome of “Double Bottom” pattern formed on the weekly chart. The daily chart made a “gap up” close that resulted in further upside towards Rs 150. The RSI is trading at 77 value. The first week of the current month witnessed a substantial rise in volumes and similar structure was last seen in July 2016. CLICK HERE FOR THE CHART

Steel Authority of India (SAIL): The counter trades above 50 and 100 DMA located at Rs 34.40 and Rs 38, respectively. The "Higher High, Higher Low" formation has seen RSI decline from overbought territory. MACD trades with a positive crossover above the signal line. Over the past weeks, the counter has seen an upside after the resistance breakout of Rs 35. CLICK HERE FOR THE CHART


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