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
Technical Analysis:
As of Monday, JSW steel has surged nearly 40% to its investors since mid-July.
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!!!
Hitting a strong Resistance near 270 levels, I believe that a reversal can be seen from henceforth.
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.
