Jindal Steel sees 'Cup and Handle' pattern breakout; trading strategy here

Aakash Shah, technical analyst at Choice Equity Broking expects Jindal Steel stock to rally towards ₹1,180-1,220 target zone in the coming weeks.

JINDAL STEEL

Current Market Price: ₹1,115  Target Price: ₹1,220  Stop Loss: ₹1,050  Jindal Steel is exhibiting a strong bullish continuation setup after a prolonged consolidation phase. The price action on the higher time-frame has formed a Cup and Handle pattern, which is a classic continuation structure seen during healthy uptrends, writes Aakash Shah, Aakash Shah, technical research Analyst at Choice Equity Broking.  The rounded base reflects steady accumulation over time, while the shallow pullback near the highs represents the handle formation, explains Shah. 

 

  Here's a detailed trading strategy for Jindal Steel stock, as per Aakash Shah of Choice Equity Broking:  The stock has now confirmed a breakout above the cup-and-handle resistance zone near ₹1,090–1,100, supported by a strong bullish candle, signalling renewed buying interest and continuation of the broader uptrend. This breakout indicates that supply at higher levels has been absorbed successfully.  From a trend perspective, Jindal Steel is now trading comfortably above all key moving averages. The 20-day Exponential Moving Average (20-EMA) and 50-EMA are sloping upward, reflecting strong short-term momentum, while the stock remains well above the 100-EMA and 200-EMA, confirming a structurally strong medium- to long-term trend. This alignment of moving averages reinforces the bullish bias.  Volume activity remains supportive, with visible expansion during the breakout phase compared to relatively muted volumes during the handle formation. This volume behaviour highlights institutional participation and accumulation rather than speculative spikes.  Structurally, the handle low around ₹1,050 now acts as an important demand and support zone. As long as the price sustains above this area, the cup-and-handle breakout remains valid. On the upside, the pattern projects a potential continuation move toward the ₹1,180–1,220 target zone in the coming weeks.  Overall, Jindal Steel continues to remain in a strong bullish structure, and any dips towards the support zone could be viewed as potential buy-on-decline opportunities within the prevailing uptrend, provided broader market conditions remain supportive.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.