Where U.S. President Donald Trump was busy in slapping tariffs on various on China and Mexico, India slapped tariffs on various goods imported from U.S. to India and Indian investors are facing the rage as the Indian benchmark has erased almost 1% and trading near the psychological support of 11,700 levels. After giving a breakout of ‘Symmetrical Triangle’ on hourly scale, Nifty50 has continued to drag on lower side and expected to find support near 11,623 levels. All indices are trading in red while Metals stocks have bleed the most and trading near 2,881.35, 2.16% below from its previous close. On daily scale, Nifty Metal has given a breakout of ‘Inverted Flag’ pattern, which is a trend following pattern whose reliability is very high. The index is trading below 200 days Moving Average and expected to find support near 2,658 levels. RSI is hinting for more downside showing no signs of divergence and oversold situation. Stochastic oscillator has given a bearish crossover. Although Stochastic oscillator and RSI are not the only indicators to dictate the future prices, one can make use of other tools like Fibonacci, Andrew Pitchfork, Chart and Harmonic Patterns.
Some stocks of this counter are also witnessing heavy volumes and momentum that are convincing the emerging trend.
- Tata steel: Stock with highest free-float market capitalization is trading at 481, 4.08% below from its previous close. There has been a block deal of 186,664 shares on May 24, 2019. National Company Law Tribunal has approved takeover of Bhushan Energy.
- JSW Steel: Major steel producer is trading at 261.6, 3.65% below from its previous close. The company is considering bid for British Steel. The stock is trading below 200 days Exponential Moving Average.
- Vedanta: The stock is trading at 164.1, 3.24% below from its previous close. The stock is trading near 30 days Exponential Moving Average. There has been a block deal of 1,791,733 shares on May 14, 2014.