Jindal SAW - BUY

We recommend a buy in Jindal Saw from a short-term trading perspective. It is apparent from the charts of the stock that it has been on a steady medium-term uptrend since its 52-week low of Rs 450, recorded in early July. From this bottom, the stock has appreciated almost 37 per cent. While trending up, the stock crossed over its 21 and 50-day moving averages during early August. Moreover, the stock appears to have conclusively breached the resistance level Rs 600 level. The medium-term up trendline is intact. The daily relative strength index is on the verge of re-entering in to the bullish zone from the neutral region. The daily moving average convergence and divergence is featuring in the positive territory. We are bullish on the stock from a short-term perspective. We expect the stock’s up move to continue further until it hits our price target of Rs 675 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 584 level.