Business News/ Markets / Stock Markets/  Rakesh Jhunjhunwala portfolio: ICICI Securities gives positional 'Buy' call to this metal stock

The Nifty metal space has seen a healthy retracement in the last three months. It is currently seen rebounding after a base at the 100 days EMA. Brokerage house ICICI Securities' preferred stock pick within the metal space is Steel Authority of India (SAIL) which it expect to outperform.

The share price of SAIL has rebounded after taking support at 200 day EMA which also coinciding with multiyear breakout area around 100-105 levels, signaling resumption of up move and fresh entry opportunity, the brokerage highlighted.

"The stock has already taken seven months to retrace just 50% of its preceding five months up move (| 55-151), a shallow retracement signals a robust price structure and a favorable risk-reward set up," the note stated.

Based on the technical observations, the brokerage has recommended to Buy SAIL shares in the range of 109-112 with target price of 121 and stop loss of 104.5 with time frame of 30 days.

Going ahead, ICICI Securities expects the metal stock to resume its up move and head higher towards 121 levels in the coming weeks being the 61.8% retracement of the immediate previous breather ( 131-99).

Among the oscillators, the daily MACD (Moving average convergence divergence) has generated a buy signal moving above its nine periods average thus validates positive bias, as per the domestic brokerage and research firm.

One of the largest steel-making companies in India, SAIL produces iron and steel at five integrated plants and three special steel plants. It also manufactures and sells a broad range of steel products.

As per the BSE shareholding pattern of SAIL, Rakesh Jhunjhunwala holds 7,25,00,000 shares or 1.76% stake as of September 2021, higher from 1.39% stake he held during the April-June period. 

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Updated: 06 Jan 2022, 10:45 AM IST
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