Jindal SAW

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.

via BL