Vedanta, JSPL, Tata Steel, SAIL: How to trade metal stocks as prices rise

The Nifty Metal index can gain another 3 per cent as long as the index maintains above 6,300-level on a closing basis.

The NSE Nifty Metal Index hit a new 52-week high of 6,415.50 on Wednesday so far. Among the metal stocks, Vedanta hogs the limelight, as the stock hovers around its all-time mark of Rs 416 touched on March 22, 2022.

Jindal Steel too trades on a strong note, and is just shy from its 52-week high of Rs 501.70. Other major shares like Tata Steel and Steel Authority of India seem poised for a decent upside.

Whenever an instrument records a fresh 52-week high, investors see opportunity for further rise as new territories attract more buying interest. Given this backdrop, here’s an outlook on select metal stocks for the upcoming trading sessions:

 
Nifty Metal
Likely target: 6,500
Upside potential: 3%

A new historic peak of 6,415.50 on Wednesday indicates a bullish strength for the index. The positive sentiment shows absorption of selling pressure over 6,300 level, which led to the build of bullish bias. Going ahead, as long as the index holds the support of 6,300 on a weekly closing basis, the upside sentiment could trigger a rally towards 6.500 level.  CLICK HERE FOR THE CHART

Vedanta Ltd (VEDL)
Likely target: Rs 450
Upside potential:  11%

The stock hovers in new territory by claiming a fresh all-time high of 416 on Tuesday. A borader outlook for the stock suggests a formation of “Higher High, Higher Low” on the weekly chart. As of now, the support of Rs 385 protects the positive bias. The trend in due course may see an uptick in the direction of Rs 450. CLICK HERE FOR THE CHART

Jindal Steel & Power (JINDALSTEL)
Likely target: Rs 550 (after claiming new 52-week high)
Upside potential:  10%
 
Jindal Steel & Power shares is just shy from recording a new 52-week high above the previous level of Rs 501.70. The present momentum has a “Golden Cross” breakout, on the daily chart. The immediate support for the stock exists at Rs 480 and Rs 460 levels. A new 52-week high could instil optimism driving stock towards Rs 550 level. CLICK HERE FOR THE CHART
               
Tata Steel Ltd (TATASTEEL)
Outlook: Trendline resistance on the daily chart

The shares of Tata Steel seem to be struggling to conquer the resistance of a rising trendline, as per the daily chart. The current trendline resistance falls at Rs 1,325 level, which needs to be overcome on consecutive closing basis. In addition, the volume structure during this breakout requires an aggravated increase.  On the optimistic side, the stock trades above the 200-day moving average (DMA) set at Rs 1,250 level, a barometer for a positive strength. CLICK HERE FOR THE CHART

 
Steel Authority of India (SAIL)
Outlook: Requires to overcome 50-DMA resistance

The stock needs to overcome the resistance of Rs 100, which is its 50-DMA, on decisive and conclusive basis. Only then the stock could see a revival of its positive sentiment.  The support for the stock exists at Rs 92. CLICK HERE FOR THE CHART