Metals poised for a rally, suggest charts; JSPL, Tata Steel are top picks

A Double Bottom breakout on metal index indicates an upside towards 6,300-level, which is 7% higher from current levels.

NIFTY METAL

Likely target: 6,300

Upside potential: 7%

The index broke out of the “Double Bottom” formation indicative of a further upside, which could easily fetch 5% to 7% gains in coming sessions. In addition, the Moving Average Convergence Divergence (MACD) has succeeded in sustaining above the zero line with the Relative Strength Index (RSI) making an effective crossover, both signalling a robust momentum with an upward direction. CLICK HERE FOR THE CHART

TATA STEEL LTD (TATASTEEL)

Likely target: Rs 1,370

Upside potential: 12%

The shares of Tata Steel are likely to hold bullish sentiment as long as they hold the support of 50-weekly moving average (WMA), currently situated at Rs 1,122 levels, as per the weekly chart. In addition, an up move above the resistance mark of Rs 1,200 levels further negates any weakness on an immediate basis. The trend seems headed towards Rs 1,370, which is a jump of 12 per cent. The positive crossover of RSI reflects a bullish strength, which supports the positive bias. CLICK HERE FOR THE CHART

JINDAL STEEL & POWER (JSPL)

Likely target: Rs 440 and Rs 460

Upside potential: 6% to 10%

The breakout of the “Ascending Triangle” pattern reveals a bullish rally ahead for the Jindal Steel & Power shares, according to the daily chart. This optimism is well supported by strong volumes during the breakout point. The immediate support falls at Rs 405 and Rs 398 levels. The counter is expected to rally towards Rs 440 and Rs 460 levels. CLICK HERE FOR THE CHART

 

VEDANTA LTD (VEDL)

Outlook: Resistance range of Rs 360 to Rs 350 levels

The bullish trend is likely to remain intact as long as the 100-DMA, currently placed at Rs 304 is protected. On the higher side, the resistance range of Rs 360 to Rs 350 levels needs to be conquered to evolve a fresh breakout. The immediate support for the stock is located at Rs 330 levels, according to the daily chart. CLICK HERE FOR THE CHART

JSW STEEL Ltd (JSWSTEEL)

Outlook: Needs to conquer Rs 700 levels.  

While, the support of 50-WMA, currently placed at Rs 634 remains the crucial support and breakdown mark, the shares of JSW Steel need to conquer Rs 700 levels, which is the significant resistance, to embark a new breakout, as per the daily and weekly chart. This formation will then be called a breakout of “Inverse Head and Shoulder”.  CLICK HERE FOR THE CHART