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