NIFTYMETAL Bullish But....

Nov 27, 2022

I am very much bullish on METALS But....

Considerations - 4Monthly Chart
Index in focus - CNXMetal
Details -

• I have currently taken nifty metal's 4monthly chart, it means that it takes 4 months to form one candlestick
  
• The timeframe will be quite large, the vision that I have might take 1-3 years time
  
• Technically we can see the consolidation happening at a larger time frame near to 52 weeks high
  
• A flag pattern and a correcting RSI
  
• If we manage to break the current ATH then we may see a mega bull run in metal sector irrespective of the commodity price, which I feel have bottomed and will consolidate at current levels.
  
• Only concern is ADANI Enterprise, it has the highest allocation in the sector. Also it is trading at a very very high valuations. It is having an RSI of 97 on 4M candle, I see the correction will be there in next one year or few months. I AM SHORTING FOR SURE!
  
• I feel that the core metal producers will have an upper hand in this rally and not ADANI
  
• BUT.....This is valid if the metal index does a break out above ATH

Top constituents by weightage
Tata Steel Ltd. 20.41
JSW Steel Ltd. 15.83
Hindalco Industries Ltd. 14.76
Vedanta Ltd. 7.80
Jindal Steel & Power Ltd. 4.56
APL Apollo Tubes Ltd. 3.90
Steel Authority of India Ltd. 2.83
Hindustan Zinc Ltd. 1.79
National Aluminium Co. Ltd. 1.57

I am bullish on GPIL and VEDL

Disclaimer - Please DYOR, Don't take any position based on the above calls.