Metals stocks start on a rusty note. Is the rally over?
Premium- Bulls can be in danger only on a weekly close below 5,090.
Metals stocks started on a rusty note this week as 12 out of 15 stocks are trading in the red at the time of writing.
The leaders Tata Steel, JSW Steel, SAIL, and NMDC hit their new 52-weeks lows as government levied export duties on certain steel products.
Is the Metals rally over?
The metal sector was the best performing sectoral index in 2021, gaining 70%. So far in 2022, the index is down by 4% (YoY) and 16% in the month of May 2022.
The rally doesn't seem to be over yet as it is trading at the do-or-die level of 5,200.
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At the start of April 2022, I recorded a video on the Nifty Metal index and commodity prices, in which I indicated the rally is not yet over.
An increase in export duty may have a short-term impact on steel stocks which are down over 10%.
The bulls can be in danger only on a weekly close below 5,090 as we are witnessing multiple lows in the range of 5,170-5,300.
At present, the Nifty metal index is trading down by 6.3% at 5,340 levels. From the index, Jindal Steel, Tata Steel, and JSW Steel are the biggest losers, falling over 10%.
Meanwhile, Ratnamani Metals and APL Apollo Tubes are defying market trends and are trading 1% higher.
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Disclaimer:This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
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(This article is syndicated from Equitymaster.com)