The stock markets were trading with considerable strength on Tuesday after witnessing a 4-day rout. While the Nifty50 was up almost 0.5 per cent or 87 points and trading at 17,503.25 at the closing time, the 30-share BSE Sensex ended at 58,664.81, higher by 198 points or 0.3 per cent from the Monday closing price. Most indices were trading in the green including sectoral indies at the end of today's trading session. 58,664.33 +198.44 +0.34%

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All 15 Nifty sectoral indices were trading positively with Nifty Metal index appearing as a clear winner. The index was trading at 5,602.25, gaining almost 180 points or over 3 per cent in the intraday trading.  

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In the 15-share Nifty Metal index, all stocks advanced around this time. The biggest gainers were Vedanta Limited, NMDC Limited and JSW Steel. The stocks were up 5.6 per cent, 5.2 per cent and 4.6 per cent respectively. JSW Steel was also the top gainer in the Nifty50 index. 

Technical Analyst Nilesh Jain is bullish on this sector over immediate to near term. The Nifty Metal Index is witnessing a morning star pattern on the technical charts which suggests strength in the overall metal space. He said that investors could see this pullback to continue for the next 2-3 trading sessions ahead.   

There is an upside of another 200 points he said, adding that levels of 5,800 look in sight. There is a strong support zone at 5450 around which a trend reversal for an upside was witnessed, he further said. 

Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking recommended three stocks with potential for significant gains.  

JSW Steel: Buy| LTP: Rs 683| Target: Rs 750| Stop Loss: Rs 650| Upside 9% 

JSW Steel shares were trading with a lot of strength around this time. The stock was over 4.5 per cent on the intraday basis. It has seen a breakout from a downward sloping trend line, the AVP said. He recommended a buy at current levels and on decline.   

Hindalco: Buy| LTP: Rs 450| Target: Rs 500| Stop Loss: Rs 430| Upside 11% 

Another stock picked by him was Hindalco Industries Limited. The stock was trading around Rs 451 on the NSE around this time and was up over 2.5 per cent from the Monday closing price. The stock has reversed from its oversold position and the RSI (Relative Strength Index) now shows a trend reversal, Jain said.   

National Aluminium Company: Buy| LTP: Rs 99| Target: Rs 112| Stop Loss: Rs 93| Upside 13% 

Jain picked National Aluminium Company Limited was also trading positively today with a further upside open from here. Existing investors must hold this stock while new investors willing to make short term gains can also buy this stock, Jan said. On charts, the stock is placed strongly with pattern somewhat similar to the Nifty Metal index, Jain said.  

It has a support at Rs 93. The view is short to positional term, he concluded. 

(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.)