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We recommend a buy in the stock of JSW Energy from a short-term perspective. It is evident from the charts of the stock that following a medium-term downtrend from its 52-week high of Rs 72 registered on January 22 this year, it found support at Rs 50 in late March. Triggered by positive divergence in daily moving average convergence divergence indicator, the stock changed direction. Since then, the stock has been on a nascent short-term uptrend. While trending upwards, the stock conclusively breached its 50- and 200-day moving averages at around Rs 59.
On Tuesday, the stock gained 4 per cent, decisively breaking through its immediate resistance at Rs 63. We observe that there is an increase in daily volume over the past five trading sessions. The daily relative strength index is featuring in the bullish zone and weekly RSI is inching higher in the neutral region towards the bullish zone. The daily MACD is moving higher in line with the stock price and has entered the positive territory implying bullish momentum.
The daily price rate of change indicator is featuring in the positive zone, indicating buying interest. Our short-term forecast on the stock is bullish. We anticipate its uptrend to continue and reach our price target of Rs 68.5 or Rs 70 in the upcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 64.4 level.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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