By looking on daily charts we are bullish on Jindal Steel & Power Ltd. and has recommended buy rating on the stock with a target price of Rs 510.
"Jindal Steel & Power, the decline from its recent November'11 highs halted near the crucial support levels of Rs. 445 - 450 levels and formed a Bullish Inverted Head & Shoulder Pattern. The Right shoulder formed a Bullish Hammer with a long lower shadow which further increases the strength of the current pattern. The counter has given a bullish breakout from the Inverted Head & Shoulder pattern with a big white candle which is a bullish signal.
The stock simultaneously observed the violation along with the falling resistance line which increases the probability of a successful breakout. The RSI has breached the descending trend line drawn from its October'11 highs; which is a bullish signal. The prices are likely to face resistance in the medium term near the 100 sma which stands at Rs. 515 levels respectively.
The stock simultaneously observed the violation along with the falling resistance line which increases the probability of a successful breakout. The RSI has breached the descending trend line drawn from its October'11 highs; which is a bullish signal. The prices are likely to face resistance in the medium term near the 100 sma which stands at Rs. 515 levels respectively.
Buy Jindal Steel & Power at CMP Rs 494; Stop Loss: Rs 486; Targets: Rs 510; Rs 518 (Short Term 2-3 days) & Rs 535; Rs 545 (Medium Term Holding Period 2 Weeks.
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