In 2021, the commodity market witnessed a stellar rally fueled by metals which sent the Nifty Metal index soaring. The index gained 70% in 2021.
Most of the commodity stocks in India were rallying like there's no tomorrow.
But 2022 has not been the same, so far. It has been the opposite where the metal index has lost close to 13% so far.
The metal index has been underperforming against the broader markets as most of the metals in commodities market have corrected over 20% from their highs.
The above term is the Spanish phrase which translates to "opportunity in the red market" in English. The metal index has corrected to the demand zone as per the technical pattern.
Do the charts says buy it? I think so...
On the weekly chart, the index has fallen near the 2018 highs of 4,256. The resistance will act as support while the 200WEMA placed at 4,140 will be an icing on the cake for investors.
RSI in the lower panel is trending in oversold zone indicating an opportunity in the red market.
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.
At present, the Nifty metal index is trading on a flat note at 4,840 levels.
From the index, Jindal Steel and JSW Steel are the top losers while Hindustan Zinc and NALCO are the top gainers today.
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 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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