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