Web Special: Technical check on select metal majors

Check out the technical trends for select metal majors with Kunal Bothra, Technical Analyst at LKP Securities.

Smartinvestor : Markets have been witnessing a weak trend since the past five weeks. Will the benchmark Nifty consolidate before moving higher or there is more downside remaining? Further, what is your advice to traders for the rest of this week?
 

Kunal Bothra : I think, the signals from the last 2 days of the market indicate that the market would consolidate. Since many stocks were oversold, there is a likelihood of a bounce in them as well. I think, closer to 5600 levels on Nifty, once should look at building long positions for a bounce till 5800-5850 levels
 

Smartinvestor : Metal stocks have rebounded after being beaten down on Monday. PSU steel major SAIL has been in a downtrend from Jan this year from nearly Rs 100 levels. The stock has touched a 52-week low today, what is your call on the stock from current levels?
 

Kunal Bothra : Metal stocks have seen a very sharp correction. They were late boomers in the last six months. Sail technically still looks weak. Its broken a set of crucial support of 78. I think till the time stock trades below this level, one should maintain short positions on Sail.

 

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