The Nifty metal index logged a resolute breakout above the last five month’s consolidation range with a higher base formed in the vicinity of 100 days EMA, highlighting robust price structure. Going ahead, ICICI Securities expects Nifty Metal index to continue its relatively outperformance. Tata Steel and Vardhman Special Steels are the brokerage’s top stock picks in the metals sector with three months time frame.
“Going forward, supply fears on the back of current geopolitical scenario coupled with rising input costs is likely to support a further uptick in steel prices,” the note stated. Further, due to the current geopolitical scenario, as there are supply related fears from both these countries, Indian steel companies have an opportunity to step up their exports, as per the brokerage.
ICICI Securities’ top stock picks –
Tata Steel: “The stock recently generated a breakout above the falling channel containing six month’s corrective decline and is currently seen sustaining above the same signalling resumption of the up move and offers a fresh entry opportunity,” ICICI Securities. The domestic brokerage house expects the stock to maintain positive bias and head towards its September 2021 high of ₹1,460 in the coming months.
Vardhman Special Steel: “The share price of Vardhman Special Steel has formed a higher base above 52 week’s EMA and is seen resuming its primary uptrend signalling strength and offers a fresh entry opportunity with favourable risk reward set up,” ICICI Securities stated. It expects the stock catch up with its peers and head higher towards its all-time high of ₹292 in the coming months.
“Among the oscillators the weekly 14 periods relative strength index (RSI) has generated a buy signal moving above its nine periods average thus validates positive bias.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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