The short-term outlook for the stock of Jindal Steel & Power is bullish. The sharp 9 per cent surge on Tuesday marks the end of the corrective fall since the first week of this month. A fresh leg of rally has begun. Support will now be in the ₹555-₹550 region. Intermediate dips will be limited to ₹550 as fresh buyers are likely to come into the market at lower levels.

Related Stories
JSPL acquires Monnet Power for ₹410 cr
“The acquisition is primarily for captive usage and will improve our bottomline going forward,” said a JSPL official

Jindal Steel & Power can rally to ₹645-₹650 over the next two three weeks. Traders can go long now and accumulate at ₹560. Keep the stop-loss at ₹535. Trail the stop-loss up to ₹585, the stock moves up to ₹595. Move the stop-loss further up to ₹615 when the stock touches ₹630 on the upside. Book profits at ₹640.

Related Stories
Steel stocks which are likely to gain from export duty removal
Rebound in domestic steel prices expected after a grim second quarter.

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