Dalal Street stocks settled lower on Tuesday in line with global peers. The BSE Sensex shed 40.14 points, or 0.07 per cent, to settle at 57,613.72. Nifty50 fell 34 points, or 0.20 per cent, to 16,951.70 level for the day.
Metal stocks emerged as worst performer among sectoral indices, with stocks such as Tata Steel, JSW Steel and Jindal Steel and Power on traders’ radar. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday’s trading session:
Tata Steel | Resistance: Rs 105 | Support: Rs 100
Tata Steel has witnessed a breakdown of Head and Shoulders pattern. The counter is facing resistance at the 200-DMA of Rs 105 level. It is trading below its key moving averages, which shows that the structure is weak. The momentum indicator RSI is trading below the 50-mark with a negative bias. MACD, on the other hand, is witnessing a centerline crossover on the downside. On the upside, the level of Rs 105 will be an immediate hurdle. On the downside, the level of Rs 100 is a strong and psychological support level for Tata Steel.
JSW Steel | Resistance: Rs 680 | Support: Rs 640-610 |
JSW Steel’s stock is in a downtrend. In the last trading session, it broke below its neckline support with strong volumes. The stock is trading below its key moving averages, which is a negative sign. On the downside, the level of Rs 640 is critical level, below which one can expect a fall towards Rs 610 level. On the upside, the level of Rs 680 is an immediately susceptible area.
Jindal Steel & Power| Resistance: Rs 580 | Support: Rs 500-480 |
Jindal Steel & Power saw a strong rally from June 2022 to January 2023. It moved from Rs 300 to Rs 600 levels and saw breakout of a Head and Shoulders pattern on the daily chart with huge volumes. The cluster of moving averages at around Rs 580 is acting as resistance. On the downside, Rs 500 is the psychological support level for the stock. Below this, one can expect Rs 480 level in the near term, which is also its 200-SMA.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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