Jindal Steel stock reclaims Rs 1,000 mark after 2 months; can it breach record high?

Shares of Jindal Steel and Power Ltd (JSPL) have reclaimed the Rs 1,000 mark after two months. The multibagger stock is trading above the Rs 1000 mark for the second consecutive session today. It closed at Rs 1,004 and hit an intraday high of Rs 1012.50 in the previous session. Before that, the stock closed above the Rs 1000 mark on July 16. 

In the current session, the stock rose 2% to Rs 1025.30 on BSE. JSPL stock hit a record high of Rs 1097.10 on June 21,2024 and fell to a 52 week low of Rs 581.90 on November 1, 2023. A total of 0.35 lakh shares of the firm changed hands amounting to a turnover of Rs 3.52 crore on BSE.    

The stock has risen 38 per cent since the beginning of this year and risen 128 per cent in two years. JSPL shares have clocked multibagger returns of 138% in the last five years.

The stock has a one-year beta of 1.2, indicating very high volatility during the period. However, the stock is neither overbought nor oversold on charts with the relative strength index (RSI) of Jindal Steel at 63.3. Jindal Steel shares are trading higher than the 10 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.  

AR Ramachandran, a Sebi registered analyst said, "Jindal Steel and Power stock price is bullish on the Daily charts with strong support at Rs 986.  A Daily close above resistance of Rs 1019 could lead to a target of 1072 in the near term."

Ameya Ranadive, CMT CFTe, Sr Technical Analyst, StoxBox said, "Jindal Steel and Power (JSPL) is currently trading at Rs 1004, having successfully broken out of a trendline that has been intact since mid-June 2024. The Relative Strength Index (RSI) has risen to 63, indicating bullish momentum, while the Average Directional Index (ADX) sits at 28, signifying a strengthening trend. ADX, when above 25, shows a strong trend, while RSI values above 50 suggest upward price strength.

"The stock has breached its resistance at Rs 980, where the 20-day and 50-day exponential moving averages (EMA) also acted as resistance. The Bollinger Bands, which measure volatility, are expanding, suggesting increased price movement and potential for further upside. When the bands widen, it generally indicates higher volatility and the potential for a continuation of the current trend. Given the technical indicators, JSPL is poised to reclaim its all-time highs. A break above Rs 1077 could lead to a rally toward Rs 1155, with a recommended stop-loss at Rs 925 to manage downside risk," the analyst from Stoxbox said.