The Nifty metal space has witnessed decent retracement in the last three months. It is currently seen rebounding after a base on the 100-day EMA. In the metals space, the preferred stock of brokerage house ICICI Securities is Steel Authority of India (SAIL), which is expected to outperform.
SAIL stock price reversed after taking support at the 200-day EMA, which also coincides with the nearby multi-year breakout zone. The 100-105 levels, indicating an upward resumption and opportunity for fresh entry, highlighted the brokerage.
The note said, “The stock has taken seven months to retrace only 50% of its last five-month up move (|55-151), a shallow retracement with a strong price structure and a favorable risk-reward set.” indicates up.”
Based on the technical comments, the brokerage recommends buy SAIL shares with a target price of 109-112. 121 and stop loss 104.5 with a time frame of 30 days.
Going ahead, ICICI Securities expects the metal stock to resume its upward move and move higher The 121 level is a 61.8% retracement from the immediate previous breath in the coming weeks ( 131-99).
Among the oscillators, the daily MACD (Moving Average Convergence Divergence) has generated a buy signal by moving above its nine-period average, thus validating the positive bias according to the domestic brokerage and research firm.
One of the largest steel making companies in India, SAIL produces iron and steel in five integrated plants and three specialized steel plants. It also manufactures and sells a wide range of steel products.
As per SAIL’s BSE shareholding pattern, Rakesh Jhunjhunwala holds 7,25,00,000 shares or 1.76% stake as of September 2021, which is higher than the 1.39% stake he held during the April-June period.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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