Steel Authority of India (₹90.4)

Investors with a short-term perspective can buy the stock of Steel Authority of India (SAIL) at current levels. The stock has been in a medium-term uptrend since taking support at ₹53.5 in early October this year. Following a short-term corrective sideways consolidation phase for about two months, the stock has resumed its uptrend now.

On Tuesday, the stock gained 5.8 per cent accompanied with above average volume, decisively breaching a key resistance at ₹87. There has been an increase in daily volume over the past six trading sessions. Both the daily and weekly relative strength indices are hovering in the bullish zone implying bullishness. Moreover, the daily as well as weekly price rate of change indicators features in the positive terrain indicating buying interest.

The stock trades well above its 21- and 50-day moving averages. The short-term outlook is bullish for SAIL. The stock can extend its uptrend and reach the price targets of ₹94 and ₹96 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹88.4.

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

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