Tata Steel, Vedanta can surge 14%, provided they defy this chart formation

All metal stocks have "Death Cross", and if the current rally shows sustainability, the pullback rally would see added interest, indicate charts.

Metal stocks have witnessed robust gains in recent fortnight, with the Metal index outperformed the benchmark indices by rising 13 per cent as against a a near about 5 per cent rally on the BSE Sensex and the Nifty 50. 

Among individual shares, Vedanta rose the most - surging as much as 24 per cent followed by Tata Steel (14 per cent). Others like JSW Steel and Steel Authority of India (SAIL) gained in the range of 7 to 10 per cent. 

Will this bullishness continue or should investors look for exits? To understand this, lets consider technical outlook of metal stocks:-

Nifty Metal

Outlook: Set to rally up to 9% 

The Nifty Metal index is securely holding fort above the 5,000-mark. The same 50-day moving average (DMA) hurdle coincides with the horizontal resistance providing support now. And if the index exhibits sustainability here, then momentum would likely defy the “Death Cross” formed on the daily chart. Bullishness could initially aim to 5,400 and then to 5,650 level, which is the 200-DMA resistance. CLICK HERE FOR THE CHART

Tata Steel Ltd (TATASTEEL) 

Likely target: Rs 1,100

Upside potential:  14%

Shares of Tata Steel were seen struggling to conquer the 100-weekly moving average (WMA) set at Rs 954 since May 2022. The current momentum also shows the similar attempt and if the stock manages to overcome the 100-WMA, which seems likely as it moved decisively over Rs 935, its 50-DMA, and the weekly Relative Strength Index (RSI) formed a positive crossover. The positive bias might take the stock to Rs 1,100 to Rs 1,075 levels. CLICK HERE FOR THE CHART

Vedanta Ltd (VEDL)

Likely target: Rs 280

Upside potential: 14% 

Vedanta witnessed a breakout of “Inverse Head and Shoulder” on the daily chart. And a positive move above Rs 246, its 50-DMA hurdle, would mean the next upside is set towards the 200-DMA mark. The underlying tone is bullish as the Moving Average Convergence Divergence (MACD) exhibits a firm trend towards crossing the zero line. The immediate support for the stock exists at Rs 220 and the 200-DMA is set at Rs 280 level. CLICK HERE FOR THE CHART

JSW Steel Ltd (JSWSTEEL)

Likely target: Rs 629

Upside potential:  8%

An “Ascending Triangle” breakout confirms a bullish trend provided the support of Rs 560, its 50-DMA, is not breached conclusively. The trend seems headed towards Rs 629, which is its 200-DMA mark. An up move above the zero line exhibits a robust momentum of the MACD indicator. CLICK HERE FOR THE CHART

Steel Authority of India (SAIL) 

Likely target: Rs 85

Upside potential:  12%

Steel Authority of India conquered the horizontal obstacle of Rs 74 and headed higher with the support of 50-DMA, positioned at Rs 73. The trend is optimistic as the MACD moved over the zero line. On the upside, Rs 85 remains its next hurdle mark, which is also its 100-DMA, shows the daily chart. CLICK HERE FOR THE CHART