Investors with a short-term perspective can buy the stock of JSW Energy at current levels. Since the stock took support at ₹36 in early May 2020, it has been in an intermediate-term uptrend. Medium as well as short-term trends are up for the stock. In early December 2020, the stock surpassed a key barrier at ₹64 and continued to trend upwards. Following a near-term corrective decline over the past three week, the stock took support at ₹70 early this week and started to trend upwards. On Thursday, the stock gained 7.3 per cent accompanied by above average volume, breaking above a key hurdle at ₹74 levels.
For the week, the stock has gained 9.55 per cent with good volume and has strengthened the uptrend. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone. Further, the daily as well as the weekly price rate of change indicators hover in the positive terrain implying buying interest.
Overall, the short term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹81 and ₹83 in the forthcoming trading sessions. Traders can buy the stock with a deep stop-loss at ₹75.5 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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