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Tuesday, 10 January 2012

Buy Jindal Steel & Power Ltd. - Stock Recommendations

By looking on daily charts we are bullish on Jindal Steel & Power Ltd. and has recommended buy rating on the stock with a target price of Rs 510.

"Jindal Steel & Power, the decline from its recent November'11 highs halted near the crucial support levels of Rs. 445 - 450 levels and formed a Bullish Inverted Head & Shoulder Pattern. The Right shoulder formed a Bullish Hammer with a long lower shadow which further increases the strength of the current pattern. The counter has given a bullish breakout from the Inverted Head & Shoulder pattern with a big white candle which is a bullish signal.


The stock simultaneously observed the violation along with the falling resistance line which increases the probability of a successful breakout. The RSI has breached the descending trend line drawn from its October'11 highs; which is a bullish signal. The prices are likely to face resistance in the medium term near the 100 sma which stands at Rs. 515 levels respectively.

Buy Jindal Steel & Power at CMP Rs 494; Stop Loss: Rs 486; Targets: Rs 510; Rs 518 (Short Term 2-3 days) & Rs 535; Rs 545 (Medium Term Holding Period 2 Weeks.

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