Jsw Steel : A Steel Stock For The Gati Shakti Plan By The Indian PM

Jsw Steel stock has broken out of a 12-week, 16% deep Consolidation Base 2-weeks ago. However, the stock is still worth watching as the current price is only -2% away from the ideal buy price of INR 773.

 

The stock closed in red for the week, but on a lower volume. It was down -1.1% on a -13% lower volume than the 10-week average. You want to see a strong close on the heavy volume before initiating a position. That signals institutional buying. But do not conclude anything just based on this week’s action. A prudent approach would be to watch the price volume momentum in the coming trading sessions.

 

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 5.4% away from the 10-week moving average.

 

In the last twelve months, Jsw Steel has rallied nearly 182.3% as compared to 48.2% for the Nifty500. It has a Relative Strength Rating of 71. We definitely would like to see an improvement in the rating. At this point, we are taking a step back and focusing on the RS Line.

 

The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long-term trend of the line is also trending upward. If Jsw Steel can maintain this outperformance, it could make sense as a CANSLIM trade.

 

Another key part of the jigsaw is institutional sponsorship. Jsw Steel has an Accumulation/Distribution Rating of 'A-'. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

 

On the earnings front, Jsw Steel has an excellent EPS Rank of 93, which indicates consistency in earnings.  Over the past five years, the earnings and sales for the stock have grown by 20% and 10%, respectively. The 5-years earnings stability is 80. The return on equity for the last reported year is 19%.

 

The current price of Jsw Steel is -2% off from its 52-week high price and 195% above its 52-week low price. The stock belongs to the industry group of Steel-Producers, which is exhibiting excellent strength in the current market environment. The current industry group rank is 27.

 

The stock appears on our idealists: Minervini Trend Template.