Trading Diary: JSW Steels Limited

Trading Diary: JSW Steels Limited


One of the fastest-growing companies in India, Jindal South West (JSW) has global footprints in more than 140+ countries.  A subsidiary of the JSW Group, JSW steel, is the second-largest private sector steel producer in the country after Tata Steel.

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Fundamental Analysis for JSW:

Key Ratios:

  • Market Cap (Rs Cr.)       –        65,156.18
    • Book Value (Rs)             –        158.46
    • Dividend (%)                  –        200.00
    • Dividend Yield. (%)       –         0.74
    • Industry P/E                   –          9.00
    • Price/Book                      –         1.70
    • Face Value (RS)             –         1.00
5 4 Trading Diary: JSW Steels Limited
6 3 Trading Diary: JSW Steels Limited

Technical Analysis:

As of Monday, JSW steel has surged nearly 40% to its investors since mid-July.

7 1 Trading Diary: JSW Steels Limited

This massive gain was due to a successful breakout on 28th July, and there was no correction on this.   Yes, I missed this one. Too!!!

8 1 Trading Diary: JSW Steels Limited

Hitting a strong Resistance near 270 levels, I believe that a reversal can be seen from henceforth.

10 2 Trading Diary: JSW Steels Limited

We have a minor resistance near 283 and a significant resistance near 297. Reaching 297 is not favorable, as it means a 50% surge without a correction. Bulls will start booking profit, and also may use this opportunity to build shorts.

There is a strong support near 253 levels, which is well set to hold this stock above the 250 marks for some time.

Also Read: Beginner’s Guide: Technical Analysis; Support and Resistance Levels

Author’s view:

JSW steels will see a correction of about 10%-15% hereon and settle near support at 250. This stock will move sideways from here on, forming a channel for some time before it decides its future journey.

Traders are advised to take short positions and buy Puts with September expiry.

Disclaimer: The author of this post is not a SEBI registered advisor, and all information here is for educational purposes only. It is advised to trade wisely, as it may lead to losses.

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