Buy Jindal Steel & Power around Rs 404: Manghnani

Anil Manghnani, Modern Shares & Stock Brokers advice traders to buy Jindal Steel & Power around Rs 404.

Manghnani told CNBC-TV18, “I am surprised the way Jindal Steel and Power has moved. With all the Colgate scam, it is in the metal basket which has been the weakest sector on the way down in July-August. Maybe I underestimated the rally, the fall was so sharp, so it created that V-Shaped bounce where after a major fall you are getting a sharp pullback because probably it got way oversold on the downside, so that is why over shooting on the upside.”
He further added, “The Rs 450-465 range, there is a Fibonacci number at Rs 451 and plus the 200 day averages coming at Rs 460-470 range, I think that will now definitely work as a resistance. So somewhere between Rs 450 and 470 should be a resistance. Maybe because you have had such a big move and with good volumes probably the first fall is buyable. So the two levels on the downside to watch out for are Rs 404 and Rs 387, maybe you buy there again for a pullback.”