STEEL AUTHORITY OF INDIA LTD
Open—54.70--High—56.15--Low—53.45—Close-54.90 on 4.12.2020
Support:51.90/49.75/47.55/46.80/45.90/44.75/44/39.55/38.70/37.20.
Resistance:55.25/58/60.20/66.20/70.35/73.20/81.90/87.80/91.25/98.30/101.45/112.95.
All Time high:--293 made on 6.12.2007.
All Time Low:--3.95 made on 17.9.2001.
Recent Low :--20.15
made on 30.3.2020.
(Bold and underlined figures are most important)
It may be getting ready for a good up move in coming days provided it respects it important key point mentioned below and most importantly if market conditions remain conducive. The present important range for the stock is between 47.65---58.50 and obviously the key points are 47.65(it can change with upward price movement in stock) & 58.50, please note that sustained break below 47.65 on the closing basis can push it into deep corrective mode and can potentially threaten the ongoing uptrend also and then it can come down to 44.75—42.40---38.15---37.80---35.10---33.90---28.65—27.35. Similarly sustained break above 58.50 on the closing basis may give strength to the up momentum and going up it will face resistance at 60.20---64.35---73.20---78—84.40---87.80---91.25---98.30---101.45---112.95, please note that sustained close above 84.40 will open the door of big upside up to 124.35 in the stock. The bias is up as of now.
In view of the above observation aggressive traders or investor can try long trade within the range of 47.65—58.50 but whether it will give upside breakout or not is not known at this point of time and the authentic and strict stop loss in this case would be 45.50 which is too big a stop loss, therefore for risk-averse traders or investor it is suggested to buy once it moves and sustain above 58.50 on the closing basis with a strict stop loss of 55.50. Please note that trade should be exited at the stop loss price but one can re-enter the stock again once it crosses the threshold points again.
The short and medium term technical setup is
good but it will take some time for the long term technical outlook to improve
and it is already showing sign of improvement. Please note that you can structure your trade
or investment with the help of above mentioned support and resistance points.
It is strongly suggested to trail your stop losses (with the help of support levels mentioned above) in the profitable trade to avoid losses completely. PLEASE NOTE THAT IT IS PURELY A TECHNICAL CALL. DO NOT TRADE OR INVEST WITHOUT STOP LOSS.
NOTE: - It is the technical assessment of the stock as of now, the technical
interpretation changes with the price movement and time, therefore investors
are advised to look into fundamental, financial details of the company and last
but not the least management perception for the future of the company before
taking investment decision.
Disclaimer:-The view expressed here are solely of the author and he is not
at all responsible in any way for the outcome of the trade you enter based on
the above view.
Kindly note that make your cost your stop loss
in favorable trade and then trail it as the price move up/down
to gain maximum profit and avoid losses. Use support and resistance levels as
entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT
STOP LOSS.
Note: Price stated here
are of spot market.
Contact me for strategic guidance to enter and
exit trade.
Thanks
Narendra Kumar Surana
Mobile—8240951127/9831313654.
