Sector Spotlight: Buy SAIL, NALCO, JSW Steel for gains; Nifty Metal in focus on Thursday, gains 2.6% in intraday trade

Metals continue to be under the spotlight and expect bullish trends to continue in the near to medium term, technical analyst Nilesh Jain says. He picks three stocks from this sector with high growth potential. His recommendations are based on the technical analysis of the sector and specific stocks. 

While the Nifty50 was trending with a positive bias on Thursday, gaining almost points or 0.6 per cent at 18,266.80, the Nifty Metal Index was moving in tandem around 10:30 am. It was trading at 6071.60, up over 2.6 per cent in the intraday trade around this time. It was also the biggest gainer among Nifty sectoral indices followed by Nifty Realty. 

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In the 15-share index, 13 advanced while two stocks declined. The top three gainers were Hindustan Copper Limited, Hindustan Zinc Limited and Vedanta Limited. They were up 7.1 per cent. 7 per cent and 5.4 per cent respectively. 

The top losers were Ratnamani Metals & Tubes Limited and Coal India Limited (CIL) which were down 0.14 per cent and 1.2 per cent respectively. 

Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking, recommends three stocks, which he said could be top bets for the remaining October series. 

His first stock is Steel Authority of India Limited (SAIL). This stock was trading at Rs 125.05 around this time and was up 2.7 per cent from the Wednesday closing price. He recommends a Buy at current levels and on dips for the target price of Rs 135-Rs 140. He puts the stop loss at Rs 116. 

Another stock recommended by him was National Aluminum Company Limited (NALCO) for the target price of Rs 115-Rs 120. He puts the stop loss at Rs 99. It was trading up 2.4 per cent at Rs 107.75.   

The AVP picked JSW Steel for a price target of Rs 720 on the short-term basis while Rs 750 for positional term basis. He puts the stop loss at Rs 660. The stock was trading at Rs 697, up 2.3 per cent. 

He also recommends Avoid on Vedanta Limited citing that the stock has seen a considerable upward move. The risk-to-reward ratio is not favourable at these levels, he added. The stock was up 6 per cent on the intraday basis and trading at Rs 338.60. 

Jain had previously recommended Coal India for a price target of Rs 220 and positional target of Rs 235. On Thursday, it was trading negatively at Rs 186.70.  

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)