By Dalal Street Investment Journal (DSIJ)
The Nifty Metal Index rose over 2.5% on Wednesday, led by VEDL and Tata Steel, and broke above a symmetrical triangle formation on daily charts. Based on the pattern’s measured-move method (projecting the triangle’s height from the breakout zone near 12,230), the implied upside works out to roughly 10%. The breakout’s strength will hinge on holding above the breakout area and broad participation.
On Wednesday, February 25, 2026, India’s key equity benchmarks traded with solid gains. The Nifty 50 reclaimed the 25,600 mark, while the Sensex rose about 600 points. Most sectoral indices were in the green.
One of the standout performers was the Nifty Metal Index. It tracks the performance of the metals and mining space and includes up to 15 stocks listed on the National Stock Exchange (NSE).
The Nifty Metal Index was up 2.66%, with all its constituents trading higher. Gains were led by Vedanta (VEDL), Tata Steel, and Hindalco Industries. Vedanta was up around 5%, while Tata Steel climbed over 3% to hit a fresh 52-week high.
So far in February, the Nifty Metal Index has gained 4.60%. On a year-to-date basis, it is up nearly 11%, clearly outperforming the Nifty 50, which is down about 2% over the same period.
After Wednesday’s gains of over 2.5%, the Nifty Metal Index appears to have broken out of a symmetrical triangle like pattern. This setup forms when price action gets squeezed between two converging trendlines: a falling resistance line drawn by connecting the January–February swing highs, and a rising support line drawn by connecting the February swing lows. As the range narrows towards the apex, a breakout often signals the next directional move.
In this case, the breakout aligns with a continuation bias, as it has occurred in the direction of the prior trend, which is an uptrend. The index is also trading above its 20, 50, 100, and 200-day moving averages, with these averages aligned in the desired sequence. The 14-period daily RSI is in bullish territory, supporting the positive bias. Notably, during the recent correction, RSI held above the neutral zone, suggesting the pullback lacked strong downside momentum.
Trend strength indicators also remain constructive. The +DI line is above both the ADX and the -DI line, and +DI is rising—typically a sign that bullish momentum is building.
Putting this together, the symmetrical triangle breakout keeps the technical tone positive. Based on the pattern’s measured-move approach (using the widest part of the triangle), the index indicates a potential move of roughly 10% from the breakout level of 12,230.
Also Read:Sensex, Nifty Likely To See Higher Opening On Wednesday Amid Recovery in US Technology Stocks
SEBI Registered Research Analyst (INH000006396).
Founded in 1986, Dalal Street Investment Journal (DSIJ) brings decades of experience in India’s equity markets. DSIJ's research combines fundamental analysis with price action, guided by disciplined risk management and capital preservation. They follow a structured, data-driven approach designed to help investors and traders make informed decisions beyond short-term market noise.
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