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  • May 23, 2022 - Metals Stocks Start on a Rusty Note. Is the Rally Over?

Metals Stocks Start on a Rusty Note. Is the Rally Over?

May 23, 2022

Metals stocks started on a rusty note this week as 12 out of 15 stocks are trading in the red at the time of writing.

The leaders Tata Steel, JSW Steel, SAIL, and NMDC hit their new 52-weeks lows as government levied export duties on certain steel products.

Is the Metals rally over?

The metal sector was the best performing sectoral index in 2021, gaining 70%. So far in 2022, the index is down by 4% (YoY) and 16% in the month of May 2022.

The rally doesn't seem to be over yet as it is trading at the do-or-die level of 5,200.

Nifty Metal Index Daily Chart

 

At the start of April 2022, I recorded a video on the Nifty Metal index and commodity prices, in which I indicated the rally is not yet over.

An increase in export duty may have a short-term impact on steel stocks which are down over 10%.

The bulls can be in danger only on a weekly close below 5,090 as we are witnessing multiple lows in the range of 5,170-5,300.

At present, the Nifty metal index is trading down by 6.3% at 5,340 levels. From the index, Jindal Steel, Tata Steel, and JSW Steel are the biggest losers, falling over 10%.

Meanwhile, Ratnamani Metals and APL Apollo Tubes are defying market trends and are trading 1% higher.

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.

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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