The short-term outlook for the stock of Jindal Steel & Power is bullish. The price action since the month of May has been in the form of a channel. The stock tested the lower end of this channel by the end of November by making a low of ₹340. Thereafter, the stock has seen a strong bounce in the last two weeks. This keeps the channel movement intact. The chances are high for the stock to move up towards the upper end of this channel now.
Immediate support is at ₹370. Intermediate dips to this support is likely to get fresh buyers in the market. As such, a break below ₹370 is less likely. The stock can rise to ₹435-440 initially. An eventual break above ₹440 will then pave way for a further rise to ₹460 – the upper end of the channel. Short-term traders can go long now and accumulate longs on dips at ₹375. Stop-loss can be placed at ₹355. Trail the stop-loss up to ₹410 as soon as the stock moves up to ₹425. Move the stop-loss further up to ₹435 when the stock touches ₹445. Book profits at ₹455.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)