By Kiran Jani
The ongoing tariff war has made the metal sector highly volatile. Between October 2024 and January 2025, the Nifty Metal index declined by 23%. However, recent trends indicate a potential turnaround, with both the index and select stocks showing signs of recovery.
Hindalco Industries and JSW Steel have formed strong reversal patterns, suggesting possible upward movements. As these stocks approach key technical levels, they present potential trading opportunities.
ALSO READIs Gold a Buy at Rs 85,000? 1. Hindalco Industries Limited – Signs of a Bullish Reversal
Hindalco experienced a 27% decline from its September 2024 peak of ₹772 to a low of ₹557. However, the stock price of Hindalco has rebounded from a strong long-term support level at ₹550, signalling renewed buying interest.
Why Hindalco Looks Promising:
- Bullish Reversal Candlestick Pattern – A classic bullish reversal pattern has emerged, often indicating a trend shift.
- Double Bottom Breakout – The stock has broken out of a short-term double-bottom pattern, reinforcing bullish sentiment.
- Fibonacci Retracement Support – Both the candlestick and double-bottom patterns align with the 50% Fibonacci retracement level, strengthening the reversal signal.
- Volume Surge – Increased trading volume reflects growing investor confidence.
- RSI Momentum – The 14-period RSI is above 60, showing bullish divergence, which may indicate further upside potential.
Source: Investing.com Outlook: Hindalco Industries Limited
Hindalco has been a strong performer, delivering an impressive 100% return from March 2023 to September 2024. However, the stock entered a corrective phase, declining from ₹772 to ₹557 over the past six months.
Now, signs of a potential recovery are emerging. Hindalco has formed a bullish reversal candlestick pattern and displays a double-bottom structure—often a signal of accumulation before an upward move. These technical patterns suggest that the stock could be poised for a rebound.
2. JSW Steel – Bullish Continuation in Play
JSW Steel performed well in 2024, delivering a 62% return before pulling back from its September high of ₹1,060. However, the daily chart now flashes bullish signals, indicating the potential for another upward move.
Key Technical Indicators:
- Cup and Handle Breakout – A classic bullish continuation pattern has formed,
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