Tata Steel, Hindalco, JSW Steel: How to trade these metal stocks?

Domestic equity markets settled lower on Wednesday for the third session in a row. The BSE Sensex dropped 159.21 points, or 0.27 per cent, to settle at 59,567.80. The NSE's Nifty declined 41.40 points, or 0.23 per cent, to close at 17,618.75 for the day. Metal stocks saw some buying. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on three large cap metals stocks namely JSW Steel, Hindalco and Tata Steel ahead of Thursday's trading session:

Tata Steel | Buy | Target Price: Rs 124 | Sop Loss: Rs 101
Shares of Tata Steel, after falling 17 per cent from a high of Rs 124 on January 19, 2023, bottomed out near the 50 per cent Fibonacci retracement of the previous leg from the support zone of Rs 101-103 levels. The upside movement is getting better with the RSI trading above the reference line and the bullish crossover on MACD is signalling a ‘Buy’. One can buy and accumulate the stock for an initial upside target of Rs 116. Further strength can push the stock towards the Rs 124 level. Keep a stop loss at Rs 101 on a closing basis.
 
Hindalco | Buy above Rs 437 | Target Price: Rs 480 | Sop Loss: Rs 410
Hindalco shares witnessed a gradual drop from their recent peak and recently showed signs of bottoming out. The stock consolidated near Rs 410-420 zone, which is a firm support base, as seen from the past historical chart pattern on the daily chart. Prices are placed above the bullish crossover of 50- and 200-DMA’s, with some improvement in the structure showing an immense upside potential. A decisive rise above the Rs 437 level can trigger an upward move for the stock with a target of Rs 480 in the coming days.

JSW Steel | Buy | Target Price: Rs 772 | Sop Loss: Rs 699
Shares of JSW Steel have seen a decisive spurt in the last trading session, backed by decent volume on the daily chart, signifying positive development on the counter. Technically, the stock has witnessed congestion breakout on the daily scale, adding to the bullish sentiment. The stock looks well versed to continue its upward journey in the comparable period. Hence, one can buy JSW Steel with a stop loss of Rs 699 for a target of Rs 772.


(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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