One of the top-performing sectors on Thursday was Nifty Metal. The Nifty Metal index gained 1.82%, and with the exception of Adani Enterprises, all other constituents of the metal index closed the session in green. This strong move reversed the losses from Wednesday when the index fell by 1.18%.
On Wednesday, the index had fallen over 1% and hovered around the crucial support defined by the rising 20-SMA. However, Thursday saw a positive shift. The Nifty Metal index opened with a positive bias and, despite a temporary dip in the first 15 minutes, experienced a sharp surge from its 20-SMA. Intraday, the index managed to reclaim its important psychological mark of 10,000, although profit booking at higher levels trimmed some gains.
On the daily chart, the index formed a bullish candle and traded above the 20-SMA. The high of the June 4 candle, placed at the 9,988.20 level, is likely to act as an immediate barrier. Sustaining above this level could pave the way for a fresh 52-week high in the range of 10,195-10,250 in the short to medium term. On the downside, the support level is placed at 9,773, where the 20-SMA is positioned.
The daily 14-period RSI has generated a bullish signal, moving above its nine-period average, validating a positive bias. The MACD is showing a decrease in bearish momentum, with the MACD line about to cross over the signal line.
The Nifty Metal index is up by 25% in 2024 and has risen by 2.24% in June alone.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Jun 20, 2024, 6:23 PM IST
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