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Following a narrow sideways movement in the band between ₹75 and ₹85 for more than a month, the stock of Jindal Saw broke out by jumping 7.8 per cent on Tuesday. This rally is backed with extraordinary volume. Moreover, the stock’s rally has conclusively broken a significant long-term resistance at ₹84 which gives a good buying opportunity for the traders. In early May, the stock was encountering a key resistance around ₹92 levels and since then it has been on a broad sideways consolidation phase in the range between ₹75 and ₹92.
The lower boundary at ₹75 has provided reliable base for the stock in the past four months. The relative strength index in the daily as well as weekly chart has entered the bullish zone. Buying interest is also evident in the form of price rate of change indicators featuring in the positive territory. The outlook is bullish. Targets are ₹92 and then ₹94. Buy the stock with a stop-loss at ₹86.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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