The short-term outlook for the stock of Jindal Stainless is bullish. The recent price action over the last couple of weeks indicate a fresh leg of upmove. The 2.58 per cent rise on Thursday has took the stock well above the key resistance level of ₹197. Clusters of moving average resistances are poised in the ₹197-₹189 region. Prior to the rise this week, the stock has consolidated well around the moving average cluster. The stock has a room to test ₹230-₹235 in the next two-three weeks.
Traders with a short-term perspective can go long and accumulate on dips at ₹198 and then at ₹194. The stop-loss can be kept at ₹186. Trail the stop-loss up to ₹206 as soon as the stock moves up to ₹213. Move the stop-loss further up to ₹216 when the stock touches ₹222. Book profits at ₹228.
The bullish outlook will get negated if the stock falls below ₹189. In that case, the stock can come under selling pressure to ₹173-₹170 level. But such a fall looks unlikely.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)