STEEL AUTHORITY OF INDIA LTD. (SAIL)
Suggestion: Buy TARGET , Stop loss at Rs. 90
Last Price 170.35
Fig. 1 shows the price movement bar chart for SAIL. The blue lines indicate the trend lines that the price is following currently. As can be seen, the price is following the trend line from last 4 sessions. This means that the trend line has been proven from some time, and thus the trend can be believed upon.
From the price graph, it is evident that the price is expected to move upwards in the coming sessions. This is further supported by other graphs shown below.
Before looking at other graphs, it is better to first have a look at the ADX graph. This helps in figuring out which graph to look for to understand the current movement and predict the future price movement.
Fig. 2 shows the ADX graph for SAIL. The ADX has been falling from quite some time and the current value is 19. This means that the stock is in consolidation phase, and thus it is better to look at oscillators to predict the future trend.
Stochastics, one of the available oscialltors, is shown in fig. 3. The graph is specific for SAIL. The graph shows two lines – %K & D line. Currently, the %K line is above the %D line, therefore implying that the price is expected to move further up from the current levels.
I would like to advice the readers to buy the stock at the current levels and keep a target of Rs. 170. However, a stop loss at Rs. 155 is suggested in order to prevent the loss if the stock starts falling.