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STOCK TECHNICALS

Author: Srinivas Krishnan Bobba/Wednesday, October 21, 2020/Categories: Exclusive

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STOCK TECHNICALS

JSW STEEL

JSW Steel Ltd (NSE: JSWSTEEL) is an Indian steel making company based in Mumbai, Maharashtra. The subsidiary of JSW Group is one of the fastest-growing companies in India with a global footprint in over 140 countries. After the merger of ISPAT steel, JSW Steel has become India’s second-largest private sector steel company. The current installed capacity of the company stands at 18 MTPA. A $13-billion conglomerate, with a presence across India, USA, South America and Africa, the JSW Group is a part of the OP Jindal Group with strong footprint across core economic sectors, namely, steel, energy, infrastructure, cement, ventures, and sports. JSW Steel formed a joint venture for a steel plant in Georgia. The company has also tied up with JFE Steel Corp, Japan, for manufacturing high-grade automotive steel. JSW has also acquired mining assets in the Republic of Chile, the United States, and Mozambique. 

On the technical front, JSWSTEEL has higher highs and higher lows on the daily charts and is currently placed above the major long-term EMAs in the daily frame. In the recent past, after clocking a low of Rs257 levels, the stock has witnessed a bounce and rallied to the current levels, and witnessed a breakout at Rs293 levels. At the current juncture, the stock has formed a base of around Rs280 level on the lower side and is all set to move higher. The overall chart structure of the counter looks bullish from current levels and is witnessing a bounce from the support zone around Rs280-285 levels. This may trigger a fresh round of buying which may take the stock towards Rs350 plus levels. The stock is currently performing in line with the broader markets indicating the inherent strength in the counter and is trading well above the major long-term support levels. On the Bollinger band (20,2), the stock price is trading above the mean with the upper band facing in the northward direction indicating the price likely to move higher. Analyzing the recent volume price action, the volumes have been encouraging in the recent up move indicating strong hands have started accumulating the stock at current levels. On the oscillator’s side, RSI (14) is trading in a comfortable zone of above 60 levels indicating the intact bullishness in the stock. We expect the counter to continue its outperformance in the coming trading days as well and may move towards Rs360 level in the medium-term. Any correction towards the recent support levels of Rs293-295 levels may be utilized to average the positions.

Srinivas Krishnan Bobba, Deputy Manager (technical research analysis) Karvy Stockbroking Ltd

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The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

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