Technical Analysis

Jindal Saw (₹92): Buy

Yoganand D | Updated on August 30, 2018 Published on August 29, 2018

The stock of Jindal Saw has been in the limelight this week and has surged 13.5 per cent so far. There is further room for the stock to rally. Investors with a short-term horizon can buy the stock at current levels.

After a medium-term downtrend, the stock found support at around ₹70 in late June this year. The stock took support from this base in mid-July and bounced up. Since then, the stock has been in a short-term uptrend. Recently, the stock surpassed its 21- and 50-day moving averages and hovers well above them.

On Wednesday, the stock gained 5 per cent, breaking above a key resistance at ₹88. There has been an increase in daily volume over the past three trading sessions.

The daily relative strength index has entered the bullish zone and buying interest is evident as the daily price rate of change indicator features in the positive territory.

The short-term outlook is bullish for the stock. Targets are ₹96 and ₹98. Traders with a short-term view can buy the stock with a stop-loss at ₹90.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on August 29, 2018
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