Sunday, December 19, 2010

JSW Steel Buy on dips

JSW Steel (Rs 1,164.3)

JSW Steel rebounded 11.5 per cent last week after taking support from its significant long-term support band between Rs 1,040 and Rs 1,050.

The stock, however, has been on a medium-term downtrend from its life-time high of Rs 1,400 that it marked on October 4.

The stock currently faces key longer-term resistance at Rs 1,200.

Inability to exceed beyond this level will result in the stock resuming its on-going medium-term downtrend and re-test the support band between Rs 1,040 and Rs 1,050.

Next support is at Rs 950. Strong move above Rs 1,250 will mitigate the downtrend and will pave way to Rs 1,300 or Rs 1,350 levels in the medium-term.

OUR RECOMMENDATION :

The scrip is finding good support around 960 levels and is finding it difficult to go through 1400 levels. This present excellent trading opportunity to buy around 1000 levels and exit at 1350 which gives you an upside of 35% holding period of 3-4 months.

Bought to you by


Ingenious Investor

Equity Research Division


Ravina Consulting

Pattamal Plaza

3rd Cross Kamanahalli

BANGALORE 560084


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