Book profits in Jindal Steel around Rs 390-395: Kulkarni
Book profits in Jindal Steel & Power (JSPL) around Rs 390-395, says Shardul Kulkarni, Sr Technical Analyst, Angel Broking.
September 14, 2012 / 17:51 IST
Book profits in Jindal Steel & Power (JSPL) around Rs 390-395, says Shardul Kulkarni, Sr Technical Analyst, Angel Broking.
Kulkarni told CNBC-TV18, "If you look at the entire metal pack which is pretty much being the biggest underperformer year to date what we are seeing is that if you take specific stocks like Jindal Steel and Power, the stock may bounce. You are seeing that US dollar index is quite weak and is expected to weaken even going further. So metal stocks may bounce but I would say that they are not expected to give you gung-ho rallies.”He further added, “Jindal Steel and Power if someone is fortunately long you should be looking at booking profits around Rs 390 to Rs 395 levels that is the range in which the 50 day moving average offers considerable resistance to the stock.”“If you take the case of Hindalco, the stock is above the 50 DMA, right now placed at around Rs 112 but the stock will retrace back to that Rs 112 mark.”“Tata Steel is a similar bet wherein we are feeling that stock may move to around Rs 380. So, at this point of time in case of metals I am not too excited. Seeing just today’s rally because overall the chart has being extremely negative. We have seen a very strong lower top lower bottom. A bounce is possible, it is a part of the trend and the bounce is quite likely. So, you may be another 3-4% but I would use the bounce to exit from metal counters.”Disclosure: It is possible that we have positions in the above stock and we have recommended them to our clients.
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