JSW Steel (₹276.9)

Investors with a short-term perspective can buy the stock of JSW Steel at current levels. The stock is in an uptrend across all-time frames — long-, medium- and short-term.

In early September, the stock encountered a key resistance at ₹270 and started to consolidate sideways in a broad range between ₹240 and ₹270 thereafter. After four months of sideways movement, the stock emphatically breached its key resistance at ₹270 on Thursday by gaining 3 per cent. There has been an increase in daily volume over the past two trading sessions. Since taking support at ₹240 in mid-December, the stock has been in a short-term uptrend. It trades well above its 21- and 50-day moving averages.

The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI continue to feature in the bullish zone. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest. The short-term outlook is bullish for the stock. It can extend the uptrend and hit the price target of ₹288 and ₹294 in the coming trading sessions. Short-term traders can buy the stock with a stop-loss at ₹271.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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