SAIL waits for a rally

Deepak Singh Tanwar

Sail counter has been under bear attack for quite some time now. Except a minor correction, the stock price has been on a southward spiral since April this year. It has fallen from a peak of Rs 18 in April to Rs 4.90 in the third week of October. However, since then, it has been moving in a narrow range and showing some sign of consolidation. The stock has maintained itself above the October level which is a good sign. At the same time, the 21-day has given positive divergence which again hints at a trend reversal. Similar signals have been given by the medium term MACD also.

The weekly oscillators have also hinting at a rally. Overall, for medium term investors, the stock appears an attractive bet. Take a long position for 20-30 per cent returns. Keep a stop loss at Rs 4.80.

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