The Nifty metal index has corrected over 30% from the highs of 2022 as commodities have witnessed a sell-off.
Metal stocks are falling due to the economic slowdown in China, among other reasons.
The Nifty metal index was one of the biggest underperforming sectors after a stellar rally in 2021.
Recently, the index has recovered over 10% and few of the metal companies have declared dividends.
One such company is JSW Steel.
In the market recovery, JSW Steel has outperformed against the Metal index since June 2022 and the bullish momentum prolongs which can be witnessed on the chart (right chart).
On the daily price chart of JSW Steel (left chart), the stock is heading higher. Once the gap is taken out at Rs 600, the momentum may accelerate which will lead the metal index higher.
JSW Steel's current weightage is 13% in the metal index.
At the start of April 2022, I recorded a video on the Nifty Metal index and commodity prices, in which I indicated the rally is not yet over.
I also shared an update on the exciting opportunity in the metal index just a couple of days ago.
Today, the Nifty metal index ended on a positive note at 4,865. JSW Steel ended the day 2.3% higher at Rs 588.
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Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.
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