Technical Analysis

JSW Steel (₹254.9): Sell

Yoganand D BL Research Bureau | Updated on July 10, 2019 Published on July 11, 2019

Investors with a short-term perspective can sell the stock of JSW Steel at current levels. The stock has been in an intermediate-term downtrend since registering a new high at ₹427 in September 2018. Medium as well as short-term trends are also down for the stock.

In early May, the stock encountered a key resistance at ₹310 and continued to trend downwards. While trending down, the stock conclusively breached its 21- and 50-day moving averages and has been trading well below them.

On Wednesday, the stock fell by almost 3 per cent with above average volume breaching a key support at ₹260. The daily and the weekly relative strength indices have entered the bearish zone from the neutral region. Moreover, the daily as well as the weekly price rate of change indicators feature in the negative territory implying selling interest.

The short-term outlook is bearish for the stock. It can continue to trend downwards and reach the price targets of ₹244.5 and ₹239.5 in the upcoming trading sessions. Traders with a short-term view can sell the stock with a stop-loss at ₹260.5.

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

Published on July 11, 2019
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