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The Trend is Not Yet Rusty in Metal Stocks

May 17, 2022

The Nifty Metal index was one of the best performing sectoral index in 2021, gaining 70%. This was followed by 16% gains in the first quarter in 2022.

As equity markets corrected, the metal index too turned red. It fell to the year's lowest level of 5,290 recently.

Technically, the metal index is trading at crucial support of the horizontal trendline placed at 5,200. The index has reversed from 5,200 multiple times and is heading northwards.

Nifty Metal Index Daily Chart

 

Considering the trend in commodity prices, most of the metal stocks are trending bullish with a higher high-higher low structure.

We have highlighted the prices of Copper, Nickel, and Aluminium in the chart above. The prices are trending bullish with the support of a rising trendline.

As metal prices are bullish and the Nifty Metal index is at a support zone, the dips are an excellent buying opportunity. The trend is not yet rusty in metal stocks.

The trend change for the Nifty Metal index will be on a weekly close below 5,150.

At present, the Nifty metal index is trading up 4.4% at 5,600 levels. From the index, Hindalco, NALCO, Hindustan Copper, and JSW Steel are the top gainers, up 4-8%.

I'll share more on his trend on my Telegram group. If you're interested in being part of my charting journey as I share how to create wealth from profitable trade setups, join my telegram channel - Fast Profits Daily.

Meanwhile, you can watch the below video where my colleague Vijay Bhambwani discusses metal stocks.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Brijesh Bhatia

Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.

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