Technical Analysis

Jindal Steel Power (₹154.7): Sell

Yoganand D BL Research Bureau | Updated on June 17, 2019 Published on June 18, 2019

Jindal Steel and Power (JSPL)

Investors with a short-term perspective can consider selling the stock of Jindal Steel Power at current levels. The stock tumbled almost 6 per cent on Monday, breaching its 21-day moving average.

Following a short-term uptrend from the key support level of ₹130, the stock encountered resistance at ₹190 in early April 2019. Subsequently, the stock changed direction triggered by negative divergence. Since early April, the stock has been in a short-term downtrend. While trending down, the stock had decisively breached a key support at ₹170 as well as the 200-day moving average. Subsequently, this level turned into a key resistance and capped the upside recently.

Testing resistance at ₹170, the stock continued to trend downwards last week. It trades well below the 50- and 200-day moving averages. The daily as well as weekly price rate of change indicators hover in the negative terrain implying selling interest. Both the daily and the weekly relative strength indices feature in the neutral region with downward bias.

The short-term outlook is bearish. The stock can continue to trend downwards and reach the price targets of ₹148.5 and ₹145 in the ensuing trading sessions. Traders can sell the stock with a stop-loss at ₹158.

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

Published on June 18, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Sincerely,

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.