These 3 NSE Metal stocks can extend gains amid China stimulus; hint charts
Source: Business Standard
The NSE Nifty Metal index stood tall in an otherwise weak market on Monday, gaining as much as 1.6 per cent at 10,225 in intra-day deals. Meanwhile, the NSE Nifty 50 index had shed 1.3 per cent or 330 points at 25,850 levels.
Today’s up move in the metal stocks was attributed to reports of a revival push for Chinese economy. The People’s Bank of China (PBOC), on Sunday, asked commercial banks in China to reduce interest rates on existing mortgages at least 30 basis points (bps) below the Loan Prime Rate (LPR), in batches. It is anticipated that existing mortgage rates will be cut by around 50 bps on average. In China, the Shanghai Composite index soared nearly 6 per cent on Monday.
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Here’s how the Nifty Metal and its few key components are placed on the technical charts:
Nifty Metal Index Outlook
Current Level: 10,225
Upside Potential: 7.4%
Support: 10,100; 10,000; 9,750
Resistance: 10,300; 10,730
On the upside, the NSE Metal index can potentially rally to 10,985 levels, with interim resistance seen at 10,300 and 10,730 levels. On the other hand, in case, support at 10,100 is broken, the index could seek support around the 10,000-mark and 9,750 levels. The overall bias is likely to remain positive as long as the index holds above 9,600.
Outlook on key metal stocks
Hindalco
Current Price: Rs 755
Upside Potential: 9.7%
Support: Rs 744
Resistance: Rs 774
Hindustan Copper
Current Price: Rs 342
Upside Potential: 12.6%
Support: Rs 328
Resistance: Rs 361
JSW Steel
Current Price: Rs 1,028
Upside Potential: 7%
Support: Rs 1,006; Rs 995; Rs 980
Resistance: Rs 1,053; Rs 1,070
On the upside, the stock can attempt a rally towards Rs 1,100; with interim resistance likely around Rs 1,053 and Rs 1,070. On the flip side, break and sustained trade below Rs 1,006 could trigger a price correction for JSW Steel towards Rs 996 – Rs 980 levels.
First Published: Sep 30 2024 | 2:22 PM IST