Bearish Risk: Steel, Metal, Gold Stocks Face Profit Booking Ahead of

Steel, metal, and gold-related stocks have experienced a significant boom over the last three months, leading to substantial gains. The article suggests a high probability of profit booking in these sectors.

This is significant for traders as it signals a potential short-term correction or consolidation phase for these high-flying sectors. The upcoming expiry could act as a catalyst for traders to square off positions and realize gains, leading to downward pressure.

Stocks in the metals sector like TATASTEEL, JINDALSTEL, HINDALCO, VEDANTA, and NMDC, along with gold-related stocks such as RAJESHEXPO, are likely to experience negative pressure due to profit booking. This could lead to a temporary downturn or sideways movement in these counters.

Traders should monitor price action and volume in these stocks closely. Look for signs of distribution or breakdown from key support levels. Consider using trailing stop-losses for existing positions and avoid fresh long entries until the profit booking phase subsides.

• •Steel, metal, gold related stocks saw 'BOOM gain' in last 3 months.
• •Higher chances of 'profit booking possible ahead this expiry'.
• •Risk flag: Sharp reversals if profit booking intensifies
• •Risk flag: Global commodity price volatility