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JSW Steel Technical Analysis #29: Buy | Target Rs 304 | Arijit Banerjee

OUR RECOMMENDATION

CMP#284.5
IdeaBUY
Buy Range279 – 284
Target304 – 315
StopLoss*268
Duration15 – 20 Trading Sessions
Potential Return^7 – 11%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
284.5BUY279 – 284304 – 31526815 – 20 Trading Sessions7 – 11%

# CMP on Feb 26, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 294.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

JSW Steel is the second largest private sector steed company, spanning their business over 140 countries having product range of TMT bars, hot rolled, cold rolled and galvanized sheets. Moody’s service had revised their outlook to be positive. In Q3FY19 the company’s net income was improved by 11% to Rs.20,355 crore and Net Profit dropped by 10% YOY to Rs.1603 crore. This Sajjan Jindal led firm had offered to pay 19,350 crores for a takeover of the debt-ridden firm Bhusan Power which is further to be approved by NCLT.

Stock Data
NSE CodeJSWSTEEL
SectorNifty Metal
52W High427.55
52W Low256.6
Face Value1
Relative Performance_JSW Steel vs Nifty Metal Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • Stock Price recently make Breakout above the true crucial Weekly Resistance, at 280.
  • The breakout above the upper side shows further bullishness. 
JSW Steel Weekly Chart
JSW Steel Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • Last few days stock is trading above the 15 days MA and recent closing near the Upper Bollinger Band showing the confidence of our view.
  • Volumes have gone up along with price rise.
  • Overall a positive chart and momentum pattern indicating an opportunity for a BUY trade.
JSW Steel Daily Chart
JSW Steel Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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