Bull Market in Metal Stocks

Hello viewers. Welcome to the Fast Profits Daily. Myself, Brijesh Bhatia.

This is a video of an update and the future trend of Metal Index. If you remember, we have showed a video on metal stocks that it is about rally on 29th of November when the metal index was trading somewhere around 5,200.

If you look at the thumbnail, this was the video in which I have shot on 29th of November. You can go to our YouTube channel and you can go to our previous videos and watch this video again in case you want.

So this is an update on how the momentum has changed, how the chart has changed, and what is the future course of momentum for the metal space. So the metal index has been trending on a quite a strong trend. So if you remember, when it was trading around 5,250 levels, now it has moved above 6,000 levels. So the trend is very, very bullish as of now, if you look at the momentum.

Now, if you look at the metal prices, before I go to the Nifty metal index view, let's look at how the metal prices are trending at current point of time.

So first chart is the copper chart. This is the MCX copper chart. If you look at the screen right now, this is continuous futures chart of MCX copper prices.

 

If you look at the momentum, after a rally, it was trading in a consideration zone in a form of triangle structure if you look at the triangle over here. It has broken out of the triangle structure now and it is heading higher towards 800 levels on MCX. So I believe the momentum is very, very strong in copper prices.

 

Similarly, if you look at the aluminium. This is again the MCX aluminium price, the continuous chart and if you look at the momentum, it's trading an all-time high and again that could be seen in the stocks like Hindalco, which is trending on a positive note on the back that aluminium prices are trending higher and higher.

So both the copper and aluminium both are trending very, very strong on the bullish momentum. So again, generally, if you look at the metal index prices, they follow the copper prices and aluminium prices largely.

 

Now, if I look at the metal index over here, after a test of somewhere around 6,200-6,300 levels, it came back to the lower levels of 5,150-5,200. It consolidated in a structure, a rectangle structure, took support at the lower band. And now the fresh momentum breakout is visible.

If l look at the right hand side, post the highs, it took around nearly 110 trading sessions, which has been very, very strong consolidation before the breakout. Again the key the psychological level of 6,000 plays a crucial structure over here. I think any dip towards this re-test of somewhere around 5,900 could be a good opportunity to go long.

We also look at the outperformance of the metal index against the Nifty. If you look at 2021, it was a year for metals. In the start of 2021 as well as I indicated that this year can be the year for metals. Now, the momentum is again picking up after a consolidation zone.

 

So look at the ratio chart of the CNX metal index verses the Nifty. This means that when the ratio goes higher, the metal index is outperforming and when they go lower, it means Nifty is outperforming. If you look at the basing structure, it has formed after the highs in August 2021. It took support at multiple times and now, if you look at the previous highs, which was somewhere around 0.25-0.28, it has been taken out, which means that metal index here is outperforming by a huge margin against the Nifty.

So I believe, this momentum could continue into the markets and the metals could continue its bullish rally. So definitely a focus should be on metals space at current point of time and I believe the recent all-time highs could be surpassed in the metals space as well. So keep a watch on metal space. We are witnessing some of these stocks which are outperforming.

JSW Steel, Jindal Steel, Tata Steel, Hindalco, these are the few stocks I think could continue their bullish momentum, and you should definitely look for an investment opportunity when these stocks dip.

Signing off, Brijesh Bhatia.