Sector Spotlight - Analyst revises targets as NALCO, JSW Steel hit targets; recommends Hold on SAIL
Technical Analyst Nilesh Jain remains bullish on metal sector. He previously recommended three stocks - Steel Authority of India Limited (SAIL), National Aluminium Company Limited (NALCO) and JSW Steel Limited. He retains a Hold and buy on dips on these stocks
The stock markets opened with a bang on Monday after closing at record highs on Thursday. The Nifty50 was up 0.91 per cent or 167 points and was trading at 18,505. Meanwhile, the 30-share BSE Sensex was trading at 61,851.25, gaining 545.3 or 0.89 per cent from the last closing.
Barring Nifty Pharma and Nifty Healthcare indices, all other sectoral indices were trading in the green. However, the spotlight was once again on the Nifty Metal.
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Nifty Metal gained over 4 per cent in the intraday trade and was trading at 6,260.35 at 12:35 pm. In the 15-share index, 13 stocks advanced while two stocks declined. Hindustan Copper Limited, Hindustan Zinc Limited and Vedanta Limited were the top gainers on this index. They were up 13.75 per cent, 13.25 per cent and 12.43 per cent respectively.
The losers were Adani Enterprises Limited and APL Apollo Tubes Limited which were down over 1 per cent and 0.81 per cent respectively.
Technical Analyst Nilesh Jain remains bullish on this sector. Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking previously recommended three stocks - Steel Authority of India Limited (SAIL), National Aluminium Company Limited (NALCO) and JSW Steel Limited. He retains a Hold and buy on dips on these stocks.
SAIL – This stock was trading at Rs 126.70 on the NSE and was up over 2 per cent on the intraday trade. The target price is Rs 135. The 52-week of this stock is Rs 151. This stock was recommended at levels around Rs 125 and a buy on decline is advised. He puts the stop loss at Rs 116.
NALCO – It was recommended for the target price of Rs 115 and Rs 120. Bothe the targets have been hit today. The share was trading at Rs 120.90 around this time and was up over 12 per cent. The new target price is Rs 135 with a stop loss at Rs 110. Buy on dips is suggested. The stock today hit upper circuit on the on the intraday basis.
The AVP picked JSW Steel for a price target of Rs 720 on the short term basis. It has hit the target on the intraday basis with a high of Rs 724.90. It was trading at Rs 719.75 around this time, up 3.88 per cent. He gives two price targets at Rs 750 and Rs 770. He has a positional term view on this stock. He puts the stop loss at Rs 680.
He also recommends Avoid on Vedanta Limited citing that the stock has seen a considerable upward move. The risk-to-reward ratio is not favourable at these levels, he added.
He further advised investors to avoid on Hindustan Zinc as the stock has gained significantly and did not offer good returns proposition at current levels in the near term.
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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