Technical Analysis

Jindal Steel & Power (₹173.4): Buy

Yoganand D | Updated on January 03, 2020 Published on January 03, 2020

Jindal Steel and Power (JSPL)

Investors with a short-term perspective can buy the stock of Jindal Steel & Power at current levels. The stock has been in a short-term uptrend since taking support at ₹132 in mid-December 2019. While trending up, the stock had decisively breached its 200-DMA and trades well above 50- and 200-DMAs.

The medium-term trend is also up for the stock since it took base at ₹91 in early October 2019. After testing a key resistance at ₹165 for a few days, the stock has conclusively breached this barrier on Thursday, by gaining 4.3 per cent accompanied by above average volume.

This rally has strengthened both short as well as medium-term uptrend. The daily relative strength index features in the bullish zone and the weekly RSI entered the bullish zone from the neutral region. Besides, the daily and the weekly price rate of change indicators hover in the positive territory indicating buying interest.

Overall, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹181 and ₹184 in the short-term. Traders can buy the stock at current levels with a stop-loss at ₹169.

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

Published on January 03, 2020
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