Technical Analysis

Jindal Steel & Power (₹97.3): Buy

Yoganand D BL Research Bureau | Updated on May 13, 2020 Published on May 14, 2020

The stock of Jindal Steel & Power jumped 8 per cent with above average volume on Wednesday, breaking above a vital resistance level of ₹94. After registering a 52-week low at ₹62 in early April this year, the stock reversed direction triggered by positive divergence. Since then, the stock has been in a short-term uptrend. The stock eventually breached a key medium-term resistance at ₹94.

There has been an increase in the daily volume over the past one month. The stock has surpassed its 21-DMA and trades well above it. The daily RSI is charting higher in the neutral region and the weekly RSI has entered the neutral region from the bearish zone. Moreover, the daily price rate of change indicator is featuring 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 ₹102 and ₹104 in the upcoming trading sessions. Traders with a short-term horizon can buy the stock at current levels with a stop-loss at ₹94.5.

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

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Published on May 14, 2020
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