Rakesh Jhunjhunwala Portfolio In the April to June 2021 quarter, Big Bull Rakesh Jhunjhunwala added three stocks to his portfolio. Steel Authority of India (SAIL) shares were one of them. This metal stock has been under selling pressure for the past one month and stock market analyst Rakesh Jhunjhunwala is witnessing a ‘breakdown’ in anticipation of weakness in the NSE Nifty Metal Index. ₹115 per stock level. He said that after this breakdown, the share price of SAIL could go up. ₹from 80 ₹85 levels in the next one month. He advised investors to buy in approx. ₹After this expected correction, expect 85 levels for the longer term in the form of a strong bounce in the PSU counter.
Rakesh Jhunjhunwala expects breakdown in this portfolio stock; Santosh Meena, Head of Research, Swastika Investmart Ltd said, “Nifty Metal Index is trying to form a double top formation around 5900 level with negative divergence in momentum indicators which may lead to short term correction in metal stocks. Talking about individual stocks, SAIL and JSW Steel are underperforming metal stocks. They are vulnerable to an immediate correction as they are likely to break the neckline support level after the double top formation.” Meena further said that China may release more metal reserves to bridge the supply shortfall which could be a key trigger for a correction in the near term.
Important levels exposed for this Rakesh Jhunjhunwala stock; Santosh Meena, Swastika Investmart said, “SAIL is strengthening its business ₹from 125 ₹115 bands with weakness relative to the metal index where there is a decisive move below ₹The 115 mark could cause selling pressure towards its 200-DMA, which is currently located near ₹100 points while ₹85 to ₹80 will be a key demand zone on any meaningful correction and will be a good buying opportunity as the longer term trend is still bullish for this counter.”
Highlighting the fundamentals that will support SAIL’s share price once the Nifty Metal Index stabilizes; Rahul Sharma, Co-Founder, Equity99 said, “SAIL has ROCE of 11.2 per cent and ROE of 9.51 per cent. The public sector company has given PAT growth of 169 per cent in the last 3 years. The company has increased its debt by 30 per cent. plan to bring down cents and borrowings ₹20,000 crores. Apart from this, there are plans to make SAIL ₹4000 crore investment in Jharkhand to increase the capacity of Gua mines.
Speaking on SAIL’s share price target after correction; Santosh Meena of Swastika Investmart said, ₹125 is an immediate and significant resistance that coincides with the 50- and 100-DMA grouping while moving upwards ₹125 may reject a short term bearish trend and move towards the stock ₹140 points.”
Asked investors to take long positions in this share of Rakesh Jhunjhunwala; Rahul Sharma of Equity99 said, “We expect SAIL share price to go up ₹185 each in a time-horizon of 6 to 9 months.”
Rakesh Jhunjhunwala Holding in SAIL
As per SAIL’s shareholding pattern for the period April to June 2021, Big Bull Rakesh Jhunjhunwala bought 5.75 crore shares of SAIL, which is about 1.39 per cent of the company’s net shares.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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