Tata Steel, JSW Steel, SAIL: A few trading strategies for metal stocks

With a positive crossover of the 50-day moving average (DMA) with 100-DMA, the metal index can breakout above the trendline resistance of 2,150 levels.

Metal stocks were trading with decent gains on Friday. The Nifty Metal index was ruling over 2 per cent higher at 2,116 levels with all the 15 constituents advancing. Hindustan Copper (up over 7 per cent) was the top gainer on the index, followed by NMDC, MOIL, and Tata Steel - all up in the range of 3.5 to 4.2 per cent. 

So, how should you trade metal stocks in the current market? Below is an analysis of the Nifty Metal index and its key constituents on technical parameters. Take a look:

NIFTY METAL: With a positive crossover of 50-day moving