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Investors with a short-term view can buy the stock of Jindal Saw at current levels. The stock has been trending up since taking support from a long-term base level of ₹36 in early 2016. Both the intermediate- and medium-term trends are up for the stock. Following a minor corrective decline in late November this year, the stock found support at around ₹112 last week. Witnessing buying interest, the stock subsequently reversed higher.
On Thursday, the stock jumped 7 per cent with extraordinary volume, breaching the key immediate resistance at ₹120. Moreover, this rally has also breached the 21- and 50-day moving average resistances poised at ₹119. With this up move the stock’s corrective decline had come to an end and a fresh rally has begun. There has been an increase in daily volume over the past four trading sessions.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has re-entered the bullish zone. Both the daily and weekly price rate of change indicators feature in the positive terrain implying buying interest.
The stock can continue to rally and reach the price targets of ₹130 and ₹132.5 in the short term. Traders can buy the stock with a stop-loss at ₹122.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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