Wednesday 2 September 2009

Jindal Saw (Rs 533.5): Sell

We recommend a sell in Jindal Saw from a short-term perspective. It is apparent from the charts that the stock was on a medium-term uptrend from its July low of Rs 318 to August peak of Rs 591. The stock breached its medium-term uptrend-line last week and has been on a short-term downtrend. The daily price rate of change indicator is displaying negative divergence and has entered the negative territory indicating selling interest. The daily relative strength index has entered the neutral region and weekly RSI is slipping from the overbought territory. The daily moving average convergence and divergence is signalling a sell. We are bearish on the stock from a short-term perspective. We anticipate the stock’s decline to prolong until it hits our price target of Rs 480. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 559.

Source: thehindubusinessline

Posted by Harsh at 03:31

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.