Index name: S&P BSE METAL INDEX

Pattern: At Resistance

Time frame: Daily

Observation:

The S&P BSE METAL INDEX has risen almost 10% in past 5 trading sessions & is currently standing at strong Resistance, resonating to the Gap down created by it on 6^th May 2022. The rise in the Metal Index is being attributed to the theory of relaxation in COVID regulations in China, leading to stimulus in industrial activity & consequent rising demand for metals (re-opening theme).

Metal stocks such as, Hindalco Industries Ltd, National Aluminium Company Ltd, Jindal Steel & Power Ltd, Vedanta Ltd, Steel Authority of India Ltd, Tata Steel Ltd, etc were in rally in past few trading sessions.

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Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

1) Shares of Elin Electronics Limited made a weak market debut with the stock listing at ₹243 per share on the NSE, a discount of almost 1.62% as compared to its IPO issue price of ₹247 per share.

2) Reliance Consumer Products (RCPL), the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures (RRVL), will acquire 65,48,935 equity shares of LOTUS representing 51% of the paid-up equity share capital of LOTUS from the current promoter and promoter group of LOTUS at a price per share of Rs 113, aggregating to Rs 74 crore. Further, RCPL made an open offer to the public shareholders of LOTUS to acquire up to 33,38,673 equity shares, or 26% stake, of LOTUS at Rs 115.50 per share, in accordance with the SEBI Takeover Regulations.

3) Eicher Motors yesterday, announced a strategic investment in Spain’s Stark Future SL to develop electric motorcycles and for technology sharing, technical licensing, and manufacturing. The company's Board of Directors has approved an investment of Euro 50 million for a close to 10.35% equity stake in Stark Future.