Todays Pick

Steel Authority of India (₹129): Buy

Gurumurthy K BL Research Bureau | Updated on October 18, 2021

The short-term outlook for the stock of Steel Authority of India is bullish.

The stock rose 3.9 per cent breaking above the key resistance level of ₹125 and has closed on a strong note on Monday.

The level of ₹125 can now act as a good resistance turned support.

As such dips to ₹125 can attract fresh buyers into the market. The stock has room to rise towards ₹142-₹145 in the coming weeks.

Traders with a short-term perspective can go long at current levels. Accumulate longs on dips at ₹126. Stop-loss can be placed at ₹121.

The region between ₹142 and ₹145 is a strong resistance from where a pull-back to ₹130-₹125 cannot be ruled out. So, book profits at ₹142. Trail the stop-loss up to ₹132 as soon as the stock moves up to ₹137.

Move the stop-loss further up to ₹136 as soon as the stock price rises to ₹140.

The bullish outlook will get negated if the stock falls below ₹125. Such a break can drag it to ₹118.

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

Published on October 18, 2021

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