Market turns back, Realty and Metal drag

Indian stock markets witnessed a retreat in the last one hour of the trading session on Monday to close marginally up from previous close. Markets had opened positive and had hit psychological resistance levels but couldn’t sustain and turned back. All the sectoral indices were trading in green except for Realty and Metal which turned subdued in the morning session only after a positive start. Tata Steel which forms 18 per cent in the Nifty Metal index and which is also a Nifty 50 stock tumbled nearly 2 per cent.

Nifty metal index has been trading with lower tops and lower bottoms since its all-time high at 4256 levels on January 15, 2018. The index gave a Shooting Star and thereby witnessed a turnaround. The stock made a kind of Double top at 3400-3420 levels and gave a Gradual bounce up to 3704. The index prices are in between 100 and 200 days EMA levels at 3704 and 3639.

It has its multiple point downward sloping trendline breakout at 3715 and in case it hits above the levels on closing basis we can expect 373735-3780 as the next immediate resistances. However, the index has been resisting at 100 days EMA since last three sessions and hence if it starts correcting further, 3620-3590 will act as the supports followed by 3520.