Stock market tip: This share set to give a 20% return in three months
An investor can buy SAIL at 55-56 levels for the target of Rs 66 per stock. But, they must maintain stop loss below Rs 54/scrip as 54 is strong support for the counter.
On account of positive global cues fuelling FIIs to pump their money into the Indian equity markets, market investors are finding it difficult to maximise their returns. For such investors, equity experts are of the opinion that they should go by the details of the counter rather their name, size and market strength. However, experts are of the view that metal stocks would be bullish and SAIL (Steel Authority of India Limited) being a PSU company can be a better bet for an investor as it is expected to give around 20 per cent return in short-term to mid-term period means from one month to three month. They are advising investors to buy the SAIL scrip at around 55 levels as it may show the 66 levels in one to three month — a profit up to 20 per cent in three-month investment.
Speaking about the counter Vinay Rajani, Technical & Derivative Analyst, HDFC Securities told Zee Business online, "Going by the technical evidences of the SAIL shares one can find bullish inverse head and shoulder breakout on the daily charts, SAIL stock price has surpassed the resistance of 50 and 100 days EMA, its volumes have gone up along with the price rise in last 5 sessions and most importantly Nifty Metal Index has given “Flag” pattern on the daily charts. These are enough to indicate a bullish trend for the counter."
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Standing in sync with Vinay Rajani's findings in regard to the SAIL counter Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal said, "The SAIL counter has broken the 54-55 resistance and has sustained above this levels for around four to five sessions. So, an investor can buy this counter maintaining a stop loss below 54 for the target of 65-66."
On what level an investor can take his or her position SEBI registered technical equity analyst Simi Bhaumik said, "Currently, the SAIL shares are around 58 and I am expecting some profit booking in the counter as it has been surging for last five sessions. An investor should take a buy position at around 55-56 levels and book profit at around Rs 66 per SAIL stock levels."