Karvy Stock Broking Limited has maintained ‘sell’ rating on Steel Authority Of India Limited (SAIL) stock as there are full chances of a downward trend in this stock.

According to Karvy, investors can sell the stock between Rs 129-130 with a strict stop loss of Rs 132 to achieve an intraday target that lies between Rs 120-122. 
  
Karvy feels that SAIL stock would remain under high pressure due to existing market condition. 

Presently (10:40 am), the stock is trading weak at Rs 127.05 after opening at Rs 129.15 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 18.99 and 6.69 respectively. The share price has seen a 52-week high of Rs 292.50 and a low of Rs 117.55 on BSE. 

Karvy also suggested that if the stock fell below Rs 117, it may see more weakness. So the investors must sell SBI stock today. After selling the stock in today’s session, the interested investors can buy the stock again at a low price, for medium term prospective to reap good profits.

Shares of SAIL traded weak on Tuesday (Sep 30), and closed at Rs 128, as against its last closure at Rs 134.55 on Monday (Sep 29) on the BSE. The total volume of shares traded at the BSE was 3004133.

The company, on Sep 30, has inked a MoU with Larsen & Toubro (L&T) to jointly establish, expand, manage and own captive/independent power plants at suitable locations in order to meet up SAIL’s future power requirements. 

On Sep 25, SAIL is considering adding an added seven million tons of brownfield steel capacity to its Bokaro plant. 

Presently, the plant is undertaking a Rs 115 billion expansion programme to swell plant capacity from 4.5 million tons to 7.5 million tons by 2010-11. 

Steel Authority of India (SAIL) has decided to invest Rs 1.5 billion in Jammu and Kashmir`s Pulwama district.

Moreover, Salem Steel, a unit of SAIL has received Rs 19.02 billion approval, for its expansion programme. The production of steel in the Salem plant had risen to 53 million tons now, as against 35 million tons in 2004, and by 2020 it would cross 300 million tons.

The company’s board has sanctioned the setting up of 4 steel processing units (SPUs) in addition to the five that have already been approved.