Nirmal Bang Research has suggested investors to 'sell' Jindal Steel & Power stock as there are full chances of a downward trend in this stock.

According to report, investors can sell the stock with a strict stop loss of Rs 1,630 to achieve a target that lies between Rs 1510-1440-1340.

Today (May 12), the stock opened at Rs 1,522, down Rs 74.35, as against its yesterday’s closure at Rs 1,564 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 101.34 and 15.44 respectively. The share price has seen a 52-week high of Rs 2,484 and a low of Rs 517.30 on BSE.
 
The report also suggested that it’s profitable to sell the stock at the said level as the counter is under huge pressure. Moreover, the stock has rallied almost 75% from March’09 low of 970.

The report added if the stock fell below Rs 1,330, it may see more weakness. So, the investors must sell this stock.

After selling the stock, the interested investors can purchase the stock again at a low price, for medium term prospective to make good profits.

On May 09, residents of 18 peripheral villages blocked up the production work of Jindal Steel & Power Ltd (JSPL) for their demand of getting different business chances, job cards and other rehabilitation measures.

Under the banner of the Gondibeda Industrial Affected Praja Sangha, a number of villagers stopped the work at the construction location and staged a demonstration in front of the gate.

Mr. Vikrant Gujral, vice president of Jindal Steel & Power said that the company is expected to commence gas production in Bolivia by June 2009 for export to Argentina.

The gas supplies would derive from a processing facility based in the eastern province of Santa Cruz.

The company and its Bolivian associates started drilling at the El Palmar gas field at the end of March and have already made investment of around $7 million in the project.

Jindal Steel and Power (JSPL), on March 03, received the prestigious deal worth Rs 420 billion to convert coal into liquid petroleum and would make 80,000 barrels of crude oil on a daily basis.

The project will come up in Angul region of Orissa.

In all, 22 companies such as RIL, the Anil Ambani Group`s Reliance Infrastructure, SAIL, GAIL, Indian Oil, GMR Infra and Vedanta applied for the pilot project in Orissa.