D-Street Buzz: Metal stocks shine led by Tata Steel, JSPL, Hindalco; Vedanta, Hindustan Zinc gain 2% each

The Indian stock market continues trading in the green with Sensex up 357.35 points or 0.88 percent at 40901.72, and the Nifty jumping 97.20 points or 0.82 percent at 11994.

Among the sectors, the metal index gained over 2 percent led by Tata Steel, Hindalco Industries and Jindal Steel & Power which were up over 3 percent each followed by NMDC, Hindustan Zinc and Coal India. JSW Steel, MOIL, Ratnamani Metals and Steel Authority of India were the other gainers.

Vedanta was one of the most active stocks on NSE in terms of volumes with 3,88,61,318 shares being traded.

Sameet Chavan, Chief Technical & Derivatives Analyst at Angel Broking has a buy on JSW Steel with target at Rs 335 - 342. The metal pack recently went through some consolidation and did not correct in the selloff on October 15. The next day the stocks within this space just took off, especially the steel counters.

On a small time-frame, we can see ‘Inverse Head and Shoulder’ pattern, whereas on a larger scale, the bullish ‘Cup and Handle’ pattern has been developed, he said.

Share price of Hindalco Industries have gained over 59 percent in the last 6 months and was trading at Rs 186.30, up Rs 5.55, or 3.07 percent. It has touched an intraday high of Rs 187.30 and an intraday low of Rs 181.20.

Shitij Gandhi, senior technical analyst at SMC Global Securities recommends buy on Hindalco with target price at Rs 193. At the current juncture, the stock has made an inverted head and shoulder pattern on the daily charts and is on the verge of fresh breakout above the neckline of the pattern formation, he said.

Tata Steel share price has seen a steady rise with the stock adding over 15 percent in the last 3 months. It was trading at Rs 406.05, up Rs 14.05, or 3.58 percent. It has touched an intraday high of Rs 406.80 and an intraday low of Rs 394.60.

Global research firm Jefferies retained buy call on Tata Steel. It has maintained buy call on the stock with a target of Rs 485 per share. It is of the view that BSL gives a strong start to Q2 steel results adding that BSL's performance has positive read-through for Tata and JSW’s standalone results, according to a CNBC-TV18 report.

Jindal Steel & Power share price was also trading in the green as the Indian Railways approved another grade of rails developed by the company for high-speed and high-axle load applications. In a statement, JSPL said it is the first and only Indian manufacturer to successfully develop 60E1 1175 Heat Treated (HT) rails suitable for high-speed and high-axle load applications.