Metal Index Analysis by Yagnesh Patel
Yagnesh Patel 
Nifty Metal Index Analysis, Important support & Resistance levels
Nifty Metal Index Analysis
- Price Analysis: On the daily chart, the Nifty Metal Index has been trading within a defined range for the past 7-8 months. A swing high was recorded near 10,200 in October 2024. A swing low was formed near 8,650 in November 2024, establishing an overall range of 8,600 to 10,200. The index is currently trading near the 9,400 level, reflecting its position in the middle of the established range.
- Fibonacci Analysis: A Fibonacci retracement drawn on the weekly chart, covering the aforementioned range, identifies the 61.8% resistance level near 9,600. This level aligns with a critical supply zone, highlighting potential resistance to upward movement.
- Moving Averages: The daily chart shows the index encountering resistance at the 55-day MA. The slope of the MA is flat, indicating a sideways trend and lack of strong directional momentum.
- RSI: The 14-period RSI is currently resisting near the 60 zone, further suggesting limited upside movement. The RSI's behavior aligns with the index's position near the Fibonacci resistance (golden ratio), reinforcing the view of constrained upward momentum.
Ratio Chart Analysis
- Price Pattern Formation: The ratio chart is displaying a triangle pattern, with the index recently encountering resistance at the upper trendline. This indicates a lack of strength for further upside movement, suggesting potential weakness or consolidation ahead.
- RSI: The 14-period RSI is also showing resistance near the 60 zone. This aligns with the chart pattern, further signaling that upward movement is likely restricted.
- Metal Index Implication: Based on the ratio chart analysis, it appears that the Metal Index lacks the necessary strength for a strong upward trend. A period of further consolidation is more probable in the near term.
Conclusion: We are expecting stock price may go sideways from here cmp – 9450 levels
Important Resistance: 9625 – 9800 – 10170
Important Support: 9260 – 9065 – 8700
Analyst: Yagnesh Patel
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Registration Number: INH000016320
Email: support@yagneshpatel.in
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