BUY Jindal Steel with target price of Rs 225: Shrikant Chouhan, Kotak Securities
Jindal Steel has been suggested as a BUY with target price of Rs 225 by Shrikant Chouhan, Executive Vice President - Equity Technical Research, Kotak Securities. The stock is trading near its 52-week high of Rs 216 and we could see further momentum in this counter. Despite COVID-19 lockdowns, Jindal Steel has reported a better-than-expected quarter for June 2020.
Jindal Steel touched 52-week low of Rs 62 during the COVID-19 led panic selling in March 2020. But, the stock has smartly recovered from the lows in a short time period and we can now expect Jindal Steel to move even further.
As per Shrikant Chouhan, Executive Vice President - Equity Technical Research, Kotak Securities, the stock is witnessing strong price volume activity post breakout. In the last week, it rallied over 7%. The important point is that the stock not only surpassed its previous resistance of Rs 182 but comfortably managed to sustain above the same.
On daily and weekly charts, the stock has formed breakout continuation pattern which is grossly positive for the Jindal steel. For the next few trading sessions, Rs 191 should be the trend decider level for the bulls; sustaining above the same, the analyst expects a continuation of uptrend in stock to Rs 215.
Further uptrend may also continue which could the stock to Rs 225. Stop loss suggested for the trade at Rs 191.
All trading decisions should be taken by carefully considering risk-rewards ratio and conducting due-diligence on the company mentioned in the trading advice.