Investors with a short-term view can buy the stock of JSW Steel at current levels. The stock gained 4.7 per cent accompanied by extraordinary volume on Tuesday, breaking above a key resistance at ₹298 which was limiting the upside for the past two months. Following a medium-term downtrend, the stock found support at ₹257 in February this year. It subsequently changed direction and started to trend upwards till the key resistance at ₹298 capped the rally in early March.

The stock’s recent upward breakthrough of ₹298 strengthens the bullish momentum. There has been an increase in daily volume over the past two trading sessions. The stock hovers well above the 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the neutral region. Besides, the daily as well as weekly price rate of change indicators hovers in the positive terrain implying buying interest.

The short-term outlook is bullish. The stock can continue to trend upwards and reach the price targets of ₹320 and ₹327 in the upcoming trading session. Traders can buy with a stop-loss at ₹301.

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

comment COMMENT NOW