Jindal Steel and Power is one of the few stocks that haven’t got into spot light from last couple of Months. But recently, the Stock prices have turned around and news headlines have become very optimistic about the company.
Here are some of the recent headlines about Jindal Steel and Power in some major news outlets
What caused such a drastic change in Market Perception?
Well it all has to do with recent Price Action of the Stock and some improvements in the underlying Fundamentals of the company.
In Q2, Jindal Steel and Power has offset some major losses and increased its revenue from value added products. Apart from that, the company has emerged as the highest bidder in Gare IV/1 coal block auctions. If the company wins the auction, it can increase its coal availability and cut the overall operating cost. Fundamental wise, these developments are positive for the stock in the long run. As a result, market sentiment shifted from negative to positive.
Also, Price Action of the Stock shows a clear shift in Momentum. You can see the increased buying pressure and significant rise in Trading Volume on the 1D chart, since from October 10th.
All these changes point out that if buying momentum continues to persist in Jindal Steel and Power stock prices, it could turn into a short-term or Intermediate Uptrend. To get an Idea of what I mean, take a look at the Price Action Analysis on 1D Chart.
Jindal Steel and Power Stock Prices on 1D Chart
If you closely see the price action, it looks like a beginning stage of a new uptrend. There are two possibilities exists now – Buying pressure may sustain further, creating a uptrend in Stock prices or The trend development can fail and Stock prices might fall once again.
Having a Trading plan is very crucial while trading the beginning stage of a new trend, like the one you see on Jindal Steel and Power Daily chart. Traders, who’re planning to take positions in the stock, should wait for a proper pullback. Also make sure to have a proper risk management and stop-loss in place, if the Trend development turns out to be a failure. It’s worthwhile to remember that “Trading is all about possibilities”
