• Trading Account
  • Downloads
  • Nifty Options OI
    • Nifty Max Pain Chart
    • Nifty Option Change in OI Chart
    • Nifty Put Call Ratio
    • Nifty Option Total Change in OI
    • Nifty Trend Finder
  • BankNifty Option OI
  • About Us
  • Learn Technical Analysis
    • Advance Option Trading Course

OurNifty.com

A Indian Stock Market Blog

  • Forex
  • Gold
  • Intraday Stocks
  • Midcap Stocks
  • Multibagger
  • Nifty
  • Nifty Option
  • NSE
  • Amibroker

Steel Sector Outlook: Sail may Underperform in Short Term, We Advice Short Sell Sail Today Target 100

By Bhaveek Patel Leave a Comment

Steel Authority of India Ltd. is one of the largest steel producer in India, The company is in iron and steel production business. SAIL was listed on NSE on 6 July in the year 1995, the stock was like a penny at that time but now sail stock trades near 102 level on NSE and BSE. The growth of the company was not that good as we have tough competition in this sector by Tata Steel and JSW Steel. Steel being basic infrastructure metal, so its demand in India is robust. The price rise in international markets has benefited the steel industry in India as well, as India has about 20% of the worlds iron ore reserve. Seeing the technical analysis charts we see SAIL stock has underperformed the market this year, as it has dropped from 265 level to 102 level. So this is sharp drop in stock price due to selling activity mainly by FII and retail investors. Sail stock, the price action is below 100 EMA on weekly chart, so we may see much more downside from current levels. 100 EMA has acted as strong support at the time of recession of 2008, but the break below that level is important thing to notice. For near term we should be looking for selling opportunities in this stock as long as the stock is trading below 100 EMA on monthly chart. We advice traders to keep adding short positions near 111 level for short term targets as 65 and 55, stop loss for this position should be placed above the 120 level on closing basis, also note that we are trading on monthly chart of SAIL. When the target is reached traders can liquidate their short position in SAIL futures contract available on NSE. Technical indicators are in favor of our trade as most of them are still reporting bearish momentum to continue for some time before till we have sign of recovery from US and European economy. PMI data released from china has also hurt the market sentiments as for the first time these numbers were below 50 level, suggesting contraction in Economy.

Metal Sector Leader SAIL, Fundamentals:

Fundamentals of company suggests us to take long positions in this stock, but trading in the direction of trend we will keep shorting SAIL futures. Fundamentals seems to be attractive for longer term investment, as EPS of the company is at 11, Book value found to be 93 and at current market price the stock trades at PE of just 9. So from the fundamental point of view it will attract long term investors at every fall in stock price.
Sail Logo

Share1
Tweet
Pin
1 Shares

You Should Read This:

  1. Steel Sector May See More Downside: Demands Low, Jindal Steel Hit by Mines closed in Bellary Jindal Steel & Power Ltd. is the flag ship company of O.P Jindal group. This company was listed on NSE on 29 December 1999, looking at the stock chart we see that the price action...
  2. Telecom Sector Pick: RCOM Looks Attractive on Charts, Buy RCOM Today for Short term Target as 111 Reliance Communications Ltd, is a leading telecom company in India, having a huge subscriber base and network in over 15000 villages and towns. It has more than 10 million (1 crore) subscribers, However this is...
  3. Intraday Stock Trading For Today: Short Sell JSWSTEEL Near 895 for Target 874, Steel Sector Down Why JSWSTEEL is trading down : Today’s stock advice for intraday trading is on JSWSTEEL, as the stock has been in news that the company was engaged in illegal mining and we have seen huge...
  4. Bank Nifty and Banking sector outlook for short term Bank nifty and Nifty futures has been trading higher for almost 1.5 years. This all started back in the month of September 2013 when Shri Narendra Modi was declared as PM candidate of BJP. After...
  5. Metal Sector Stocks: Hindalco May Outperform Metal Sector in Short Term, Increased Demand Seen Hindalco Industries Ltd. is largest producer of aluminum in India. The company was listed on NSE on 8 January 1997, However the stock performance is not very attractive in the metal space. HINDALCO stock has...

Category: Short Term Stocks Tags: Metal Sector/ SAIL/ Short Sell

About Bhaveek Patel

Bhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course. He is having more than 10 years of experience in trading, had placed his first order on 19 June 2006 with IndiaInfoline.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post: High Beta Stock: Accumulate Sesa Goa Stock on Every Decline, Multibagger Stock
Next Post: Telecom Sector Pick: RCOM Looks Attractive on Charts, Buy RCOM Today for Short term Target as 111

Advance Options Trading Course

options trading course

Lowest Brokerage Trading A/c

Lowest brokerage trading account opening in India

Learn Technical Analysis

technical analysis course

Recent Articles

  • BSE Penny Stocks List 2021
  • [UPDATED] Nasdaq Penny Stocks List 2021
  • When to short sell Nifty options, how much margin required for Option Selling
  • Bank Nifty Option chain trading strategy
  • Dolly Khanna Current Portfolio (Updated January 2021)
  • Lowest Price Shares to Invest in 2021
  • Nifty is bullish, Trade bullish view using nifty option spread Strategy

Popular Categories

Amibroker Forex Gold Intraday Stocks IPO Midcap Stocks Multibagger NEWS Nifty Nifty Option NSE Short Term Stocks Technical Analysis

About Us | Contact Us | Privacy Policy | Disclaimer


Copyright © 2009 - 2021 OurNifty.com Trading ideas published here cannot be reproduced without permission from the author.
OurNifty is Powered by Wordpress and hosted on A2 Hosting