PSU stock gives breakout at ₹100. Do you own?

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Rakesh Jhunjhunwala portfolio: Metal PSU Steel Authority of India Limited or SAIL share price has given fresh breakout at 100 and the stock is expected to get benefit of recent rise in metal prices across world. According to stock market experts, metal prices have been rising globally that is expected to provide margin benefit to this Rakesh Jhunjhunwala-backed company on its unsold inventory. So, the state-owned company is expected to report better quarterly numbers in upcoming quarters.

Speaking on what’s fueling SAIL share price; Ravi Singhal, Vice Chairman at GCL Securities said, “Metal prices across world are rising, which may lead to margin benefit for the company on its unsold inventory. As steel and other metals are expected to remain on the higher side in near term, market is expecting improvement in margins of metal companies including SAIL. So, recent rally in SAIL share price can be attributed to this reason mainly.”

On what SAIL share price chart pattern indicates; Rohit Singre, AVP — Research at Bonanza Portfolio said, “This Rakesh Jhunjhunwala portfolio stock has given breakout at 100 on closing basis and currently this 100 is working as strong support for the metal counter. On higher side, it is facing strong resistance at 115 to 120 apiece levels. So, one can assume that the stock is trading at 20 range of 100 to 120 per share.”

Mehul Kothari, AVP – Technical Research at Anand Rathi Shares & Stock Brokers said, “It’s a tricky bet since the stock SAIL has different trend on different time frames. On the weekly scale; the stock is yet to confirm a higher bottom and that is the reason why it might struggle going ahead. However on the monthly scale; the stock is still in strong uptrend.”

Echoing with Mehul Kothari’s views, Rohit Singre of Bonanza Portfolio said that once this Rakesh Jhunjhunwala stock breaks its hurdle of 115 to 120 levels, it may go up to 130 to 135 levels in short term.”

SAIL board of directors have recently announced second interim dividend of 2.50 per equity share for FY22. The record date for second interim dividend payment has been fixed on 29th March 2022.

Rakesh Jhunjhunwala share holding in SAIL

According to SAIL’s shareholding pattern for December 2021 quarter, Rakesh Jhunjhunwala holding in the PSU metal major is 4.50 crore shares or 1.09 per cent of total issued paid-up capital of the company.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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