NIFTY METAL : METAL BARONS HAVING TOUGH RESISTANCE GOING AHEAD2 years ago in Feb 2016 , Nifty and Nifty Metal did bottom out together after that a year later, in Jan 2018 Nifty and Nifty Metal both made a top as well. Since then Nifty Metal is underperforming compared to nifty, while nifty climbing back to new highs, Nifty metal is just started advancing month ago.
Current rally in metal index is showing strength but need to be cautious buying this rally. As Nifty Approaching New life high's and We are heading to Elections so Volatility will be there but I have No Doubt About Election Result, Not Expecting any volatility in Results, Mr Modi Kaka is Going to Win For sure. We Will again have clear majority and strong Government in Centre. But Sometimes as bad news are buying opportunity, Good News are profit booking opportunity. So 2nd term of BJP will be Good news & may result in profit booking ? This is just my view, do comment what you think about it.
Let's get back to Metal, My View is When we will have corrective waves in boarder markets, Nifty Metal will be no exception, so the view is to keep a eye on Metal Barons and not to miss a short opportunity, if there is any in future.
Only Condition is, It has to respect resistance drawn on chart above and in Stocks drawn below.
If you check METAL BAROONS all are almost approaching it's tough resistance along with NIFTY METAL.
Let's take a look at them individually.
1) COALINDIA
2) HINDALCO
3) HINDZING - OUTPERFORMING.
4) JINDALSTEL
5) JSWSTEEL - Waiting for Bearish Flag to get formed.
6) NALCO
7) NMDC LTD
8) SAIL - Awaiting H&S Breakout
9) TATASTEEL
10) VEDL
I took Heavyweight Stocks all are S&P BSE METAL Index Constituents and skipping HINDCOPPER, MOIL, WELCORP, JINDAL STAINLESS (H) LTD, APL APOLLO TUBES LTD. This are non F&O stock Can't Short it.
Above post is just for preparing for a opportunity when corrective wave starts, Many from the above will be good short candidates. There is buy opportunity in Sail, Nmdc, Tatasteel, HindZinc. I will post if it meets 1: 4 Risk to Reward, if Suitable RR is not there I will just wait for shorting at Resistance levels.
Everything depends on how market unfolds in future, Market is supreme not my View. All Levels - support - resistance all are meant to be broken.
It is better to be prepared for an opportunity and not have one than to have an opportunity and not be prepared. -Les Brown
Do let me know in comments, if I am missing anything to this view or what you think about this opportunity or any contrarian view on this I would love to hear that.
Thank you !
