LIC Raises Stake By 2% In Maharatna Company SAIL: Buy, Sell Or Hold?

Steel Authority of India Ltd (SAIL) is a Maharatna CPSE company that closed today on the BSE with a market cap of Rs 34,833.20 Cr. After insurance giant Life Insurance Corporation of India (LIC), grew its stake in the state-owned steel manufacturer SAIL by around 2% through a block transaction, SAIL's share price climbed by 1.13% during the course of the past five trading sessions. LIC currently holds 35,88,07,919 equity shares in Steel Authority of India Ltd., an increase of 2.001% from 28,64,03,775 equity shares. As a result, the insurer's stake in the company's paid-up share capital climbed from 6.93 percent to 8.68 percent. This means that LIC acquired 8.26 crore shares, or 2.001 percent of the equity capital, at an average price of Rs 66.18 a piece.

After the above discussed open market transaction, Rahul Ghose, Founder & CEO - Hedged, an algorithm-powered advisory platform is bullish on SAIL and said "The Sail stock has been trading in a range for the last 3 months right from February'23. The stock is unable to breakout much like the Nifty metal index which is also trying its best to breakout from its range. On the weekly time frame, the stock is currently forming a very popular pattern which is the Cup and Handle pattern, the breakout for which would be above the 94 level. Traders should wait for the breach of this level to initiate long positions on the counter. Also it is important to see whether the stock is able to have 2 bullish closings above its 20-Day EMA which it is currently struggling to breakout from."

SAIL-(Mid cap company) and it has a monopoly in the market. CMP is 84 and till 85.50 price has resistance level. So, it's better to initiate fresh long after this range only which is 86.20 closing based. Expected target post this range is 90/92/95/100 with stop loss at 74. And if it sustains above this too then in next movement target expectation should be 105 to 120 with trailing stop loss levels at 76 those who are already in this stock, they can hold it with very first support levels at 74 says V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

Nainesh Thakkar, Head of One Percent Academy by Fisdom said "SAIL has come out from a downward channel after making a high of 151. The previous high for SAIL was 100 in Jan, 2018. That level (100) will now act as a resistance. However, a decisive close above 100 will push the stock back to the 113 levels followed by 151. A crossover above 151 will open up doors for 180 levels. The stock is following the 5 EMA level and is sustaining above it. The RSI on a weekly basis is 52 which indicates sideways movement for now, keep a watch for RSI to go above 60 to get a momentum in the price. In the current scenario this stock looks more like a wait and watch till we get decisive moves on either side."

Gaurav Bissa, VP, InCred Equities said "SAIL has been in a consolidation in the last few weeks. However, the stock is forming a bullish triangle pattern on the daily charts. Similar kind of bullish triangle pattern is witnessed in rsi as well on daily time frame implying rsi can give a strong push to the stock price going forward. The stock is on the verge of witnessing a golden crossover which once confirmed can give a quick thrust in the coming days. The breakouts will be confirmed on a close above 85 which can push it towards 90-92 zone."

"SAIL looks sideways to bearish on the Daily charts with strong resistance at 85.75. A daily close below support of 82 could lead to a target of 78.5 in the near term," said A R Ramachandran, Co-founder & Trainer-Tips2trades.

The shares of SAIL closed today on the BSE at Rs 84.13 apiece up by 0.69% from the previous close of Rs 83.55. The stock made a 52-week-high of Rs 93.90 on (19/01/2023) and a 52-week-low of Rs 63.60 on (20/06/2022). During Q4FY23, the company reported promoter shareholding of 65.00%, FIIs stake of 4.69%, DIIs stake of 12.40% and public stake of 17.91%.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.