The stock of Steel Authority of India tumbled 4 per cent accompanied by above average volume on Thursday, breaching a long-term support at ₹65. Investors with a short-term perspective can sell the stock at current levels. Since its June 2014 peak of ₹112, the stock has been on an intermediate-term downtrend. Medium- and short-term trends are also down. The stock, which had found a base at its long-term support zone between ₹65 and ₹68 in early March 2015 and late May, broke below it in the previous session.
The stock trades well below its 50- and 200-day moving averages. Further, the price rate of change indicator hovers in the negative territory implying selling interest. The short-term forecast for the stock is bearish. It can extend its downtrend in the coming trading sessions and reach the price target of ₹59.5 and ₹58.5. Sell the stock while maintaining a stop-loss at ₹63.5 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.