Trade Spotlight: What should investors do with JSW Steel, JSPL, & SAIL?

JSW Steel gained over 8 percent with high volumes, JSPL rose over 7 percent, and SAIL rallied over 6 percent to hit a fresh 52-week high on April 1

April 05, 2021 / 08:20 AM IST
 
 
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Indian market surpassed crucial resistance levels in a holiday-shortened week. The S&P BSE Sensex closed above 50,000, while the Nifty50 reclaimed 14,800 on the last working day of the week ended April 1.

The S&P BSE Sensex closed 520 points higher at 50,029, while the Nifty50 ended with gains of 176 points at 14,867 on Thursday. Indian market was shut on Friday for a public holiday.

In stock-specific action, JSW Steel gained over 8 percent with high volumes, JSPL rose over 7 percent, and SAIL rallied over 6 percent to hit a fresh 52-week high on Thursday.

Here is what experts have to say on how trade these stocks today.

Expert: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

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JSW Steel:

The stock rallied over 7 percent on April 1. It opened on a bullish note and maintained strong momentum throughout the day.

A strong price volume rally clearly indicates a continuation of an uptrend in the near future. In the short term time frame, the stock has formed a strong price volume breakout continuation formation and the texture of the pattern suggests breakout action will continue if the stock succeeds to trade above Rs 475 level.

For the swing traders, Rs.475 should be the sacrosanct level. If the stock trades above the same then we can expect the uptrend to continue up to Rs.531-550.

JSPL:

On Thursday, the stock opened with a gap up and quickly surpassed its previous resistance of Rs 355. A strong and stable rally post breakout suggests that the uptrend wave will continue in the short run.

JSPL has rallied from Rs 300 to Rs 370 within a very short period of time. The rally was price dominating and was supported with modest volume activity.

On the daily and weekly charts, the stock has formed Higher High and Higher Low series pattern which suggests that the uptrend momentum is likely to persist in the near future.

For the positional traders, Rs 350 would be the trend decider level. If the stock trades above the same then we can expect a further uptrend up to Rs 400-425. However, if the stock closes below Rs.350 then traders may prefer to exit out from trading long positions.

SAIL:

In this week alone, the stock has rallied by nearly 10 percent. On April 1, SAIL registered a fresh 52-weeks high of Rs.84.40 and after a stellar intraday rally, it closed above Rs.80 resistance mark, which is broadly positive.

The important thing is, post-breakout price movement and modest volume activity suggest that bulls are in total control and would like to maintain a positive stance in the near future.

Further, on the daily and weekly charts, the stock has formed a strong promising price volume breakout formation that also supports short-term uptrend.

For the trend following traders, level of Rs. 80 and Rs.78 should be the key levels to watch. The overall chart structure suggests if the stock sustained above the same then breakout continuation texture likely to continue up to Rs.90-94.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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