Jindal Steel may test Rs 475, says SP Tulsian

Tulsian told CNBC-TV18, “Jindal Steel & Power (JSPL) has been languishing for all the wrong reasons. They have the cancellation of Bolivia mines, no headway happening in their local or maybe on the India turf, maybe then they talked off some acquisition so lot of negative or the pessimism was building up and in fact we have seen huge shorts getting created into the stock which has been keeping it under check.”

He further added, “Maybe some renewed buying interest must have come which is making this hefty shorts or the hefty bears have come to cover it and that could be the reason for such a steep rise into the share but I wont be taking this as a fundamental or as a sustainable rally maybe at a Rs 475 can be seen as a resistance and again fresh shorts will seen getting created. So those who are having or getting profit into the stock they should really look to book because if you see into the ferrous metal space whether you talk of JSW Stee l, Steel Authority, Jindal Steel and Power this stock looks to me the most weakest amongst the lot so, profit booking will be advised at Rs 475 and fresh entry should not be taken at these levels.”

Disclaimer: I have holdings in HDFC Warrants. Other stocks discussed may have been recommended to clients.