METAL NIFTY Monthly Chart Analysis
I wrote an idea earlier on TATASTEEL and my opinion of the same using the monthly chart.
Here, I've used the monthly chart of NIFTYMETAL which in my opinion is bullish at the moment. Even though, I am posting this idea in order to further my discussion presented in the TATASTEEL idea but have done as much justice possible to the NIFTYMETAL monthly chart and have drawn a self explanatory chart.
Bullish claim reasons:
1. NIFTYMETAL fundamentals strong and are expected to become even stronger in the near as well as far future.
2. The current rally is supported by the rally in NIFTY and has shown a bullish momentum so continued riding is a possibility.
3. RSI bullish, should test the resistance line.
4. MACD bullish, recently had a crossover, histogram in rising stage.
Level Analysis:
1. The CMP is 3529, the 3525-3530 is a resistance zone and might be broken in the current rally.
2. The first level opening up is then 4000 which is a strong resistance.
3. Then a move towards 4250 which is a multi-year high can be seen. It may act as a relatively weaker resistance.
Over-all I'm bullish, but,
Risk introducing aspects:
1. Dollar index might give long side breakout at the 90 level which would have a negative effect on NIFTYMETAL as explained in the TATASTEEL post.
2. NIFTYMETAL is currently at resistance and a pull back is always a possibility.
3. RSI is in the overbought zone though it is respecting it.
Other Positive Points:
1. Metal demand all over the world is increasing and a subsequent increase in supply is anticipated in the near and far future due to the anticipated pace of the revival from the pandemic.
2. Interest in the metal sector stocks has been increasing for the past few days evident from the increase in volumes and increase in quantity traded.
3. GST collection at all time high, supportive of the metal industry.
Trade Executed: Bought TATASTEEL 800CE January expiry 7, CMP @5.1
Opinion on trade: Entry was a little early.
Trade further aim: Exit needs to be timed better.
All comments and clarifications are more than welcome.
Post only for education purposes.
Here, I've used the monthly chart of NIFTYMETAL which in my opinion is bullish at the moment. Even though, I am posting this idea in order to further my discussion presented in the TATASTEEL idea but have done as much justice possible to the NIFTYMETAL monthly chart and have drawn a self explanatory chart.
Bullish claim reasons:
1. NIFTYMETAL fundamentals strong and are expected to become even stronger in the near as well as far future.
2. The current rally is supported by the rally in NIFTY and has shown a bullish momentum so continued riding is a possibility.
3. RSI bullish, should test the resistance line.
4. MACD bullish, recently had a crossover, histogram in rising stage.
Level Analysis:
1. The CMP is 3529, the 3525-3530 is a resistance zone and might be broken in the current rally.
2. The first level opening up is then 4000 which is a strong resistance.
3. Then a move towards 4250 which is a multi-year high can be seen. It may act as a relatively weaker resistance.
Over-all I'm bullish, but,
Risk introducing aspects:
1. Dollar index might give long side breakout at the 90 level which would have a negative effect on NIFTYMETAL as explained in the TATASTEEL post.
2. NIFTYMETAL is currently at resistance and a pull back is always a possibility.
3. RSI is in the overbought zone though it is respecting it.
Other Positive Points:
1. Metal demand all over the world is increasing and a subsequent increase in supply is anticipated in the near and far future due to the anticipated pace of the revival from the pandemic.
2. Interest in the metal sector stocks has been increasing for the past few days evident from the increase in volumes and increase in quantity traded.
3. GST collection at all time high, supportive of the metal industry.
Trade Executed: Bought TATASTEEL 800CE January expiry 7, CMP @5.1
Opinion on trade: Entry was a little early.
Trade further aim: Exit needs to be timed better.
All comments and clarifications are more than welcome.
Post only for education purposes.
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