The metal sector has been on a rollercoaster ride lately, largely due to the ongoing tariff disputes. Between October 2024 and January 2025, the Nifty Metal index experienced a significant drop of 23%. However, recent market movements indicate a possible rebound, with both the index and select stocks beginning to show signs of recovery.

Hindalco Industries: A Bullish Turnaround

Hindalco Industries has recently caught the attention of investors, demonstrating a promising recovery after a 27% decline from its peak of ₹772 in September 2024 to a low of ₹557. The stock’s resurgence from a solid long-term support level at ₹550 highlights renewed interest from buyers.

Reasons to Be Optimistic About Hindalco:

• Bullish Reversal Candlestick Pattern: A classic bullish reversal formation has emerged, often signaling a positive trend shift.
• Double Bottom Breakout: The stock has successfully broken out from a short-term double bottom pattern, adding to the bullish sentiment.
• Fibonacci Retracement Support: Aligning with the 50% Fibonacci retracement level, the candlestick and double-bottom patterns strengthen the reversal signal.
• Increased Trading Volume: A surge in trading volume indicates growing investor confidence.
• RSI Momentum: The 14-period RSI is currently above 60, suggesting bullish divergence, which could point to further upside.

Outlook for Hindalco Industries

Hindalco has shown impressive performance, boasting a remarkable 100% return from March 2023 to September 2024. Despite entering a corrective phase, recent indicators suggest a potential rebound. The formation of a bullish reversal candlestick pattern along with a double-bottom structure hints at accumulation before a possible upward move.

JSW Steel: Continuation of Bullish Trends

JSW Steel has also shown resilience, achieving a 62% return in 2024 before experiencing a pullback from its September high of ₹1,060. Current daily charts are signaling bullish trends, indicating the potential for another upward movement.

Key Technical Indicators for JSW Steel:

• Cup and Handle Breakout: A classic bullish continuation pattern indicates a possible trend reversal.
• Above 200-SMA and Rising Trendline: The stock is trading above its 200-day Simple Moving Average and has maintained an upward trendline since May 2024, reinforcing a bullish outlook.
• RSI Strength: The 14-period RSI is above 55, showing signs of strengthening momentum.

Outlook for JSW Steel

Although the last six months have been tough for JSW Steel, with its price correcting from ₹1,060 to ₹880, recent technical signals indicate a potential recovery. The stock is now trading above its 200-day moving average and has formed a bullish continuation pattern, suggesting an accumulation phase that could lead to a continuation of the previous upward trend.

Final Thoughts

Both Hindalco and JSW Steel are showing strong reversal signals, indicating the possibility of a comeback. Their bullish chart patterns, rising RSI indicators, and key technical breakouts suggest that momentum is building. While the market remains volatile, these stocks may present lucrative upside opportunities. Investors should monitor key resistance levels and confirmation signals, as the next significant moves could be imminent.

Remember to consult with a financial advisor before making any investment decisions, as the above insights are intended for educational purposes only.