SAIL can give 10% further upside: M Thakkar

Mitesh Thakkar, VP, Private Client Group, Edelweiss is of the view that one can see 10% further upside in SAIL.

Thakkar told CNBC-TV18, “I think the metals are very attractive. The aluminium pack looks very good. Nalco is very close to its previous high of Rs 528-530 and that is where some supply can come in. But if you were to look at a slightly longer-term picture, I think they look very good. In fact, Hindalco has had a very good breakout during the week on the weekly charts and giving very strong closing.”

He further added, “What is also important to note per se is that the aluminium chart looks strong. So, I am sure these commodity driven stocks particularly Nalco and Hindalco are in the middle of a good uptrend and over the next few weeks we see good appreciation in the prices of these stocks. Even SAIL after declaring its results today gave a very strong move and we are seeing a lot of supply come in on these stocks at price levels around Rs 185-187 and today it just marginally was able to sustain that in the last half hour. So, I am looking at 10% more upside in SAIL at least on a trading basis and we’ll then take it from there.”