Todays Pick

Coal India (155.3): BUY

Gurumurthy K | | Updated on: Jan 04, 2022
image caption

The stock of Coal India is showing a sign of reversal. The stock has been in a strong down trend since October last year. The consolidation above ₹140 in the second half of December followed by a strong 6.33 per cent surge on Monday indicates that the trend is reversing.

Additionally, the level of ₹140 is an important trendline support above which the consolidation had happened last month also strengthens the case of a reversal. It also indicates that the uptrend that has been in place since October 2020 is intact. It also leaves the short-term outlook bullish. Immediate support is at ₹150 and the deeper support will be at ₹142. We can expect the stock to sustain well above 150 itself. The stock can rise to ₹162-165 initially.

A break above ₹165 can then take Coal India further up to ₹175-180. Traders with a short-term perspective can go long now. Accumulate longs at ₹151. Keep the stop-loss at ₹141. Trail the stop-loss up to ₹158 as soon as the stock moves up to ₹162. Move the stop-loss further up to ₹166 as soon as the stock touches ₹170. Exit the longs at ₹174.

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

Published on January 03, 2022

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

COMMENTS
  1. Comments will be moderated by The Hindu editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

You May Also Like

Recommended for you