Stay Away from JSPL: Sahil Kapoor

Sahil Kapoor of Edelweiss RCM Research told CNBC-TV18, "Jindal Steel & Power (JSPL) started to move up very late in the cycle. This is a short covering for the stock, it had cracked really strongly when it started falling from Rs 300 to about Rs 210 levels. So this is a counter trend rally. In the medium term I don't see JSPL rising above Rs 290-300. So possibly we are still talking about another 8-10 percent rise in JSPL but I think this is possibly a good amount of short covering that is happening in it."

"Once it goes away one will see that it will again start underperforming other metal stocks. So participating through Options is a much better risk adjusted way to play JSPL for the move till Rs 295 but till that time it is better to stay away from JSPL once it reaches those targets," he said.