Buy This Maharatna Company For Short Term Gains And High Dividend Yield

Share market in trade today has been for a breather after three days of consecutive losses on weak global cues. Nevertheless even as the market mood is highly indecisive and volatile, and the current correction is said to prolong for a longer time than usual, here is a stock picked as a Momentum Pick by leading brokerage firm ICICI Direct for short term gains.

About the company:

Coal India has been given as a 'Buy' for the short term of 30 days for a target price of Rs. 213 per share. The stop loss suggested for the trade is Rs. 184.

Coal India is the world's largest coal miner and producing company. The company serves power and steel sectors, as well as cement, fertilizer, brick and kilns industries, among others.

 

Brokerage's take on Coal India stock:

Brokerage's take on Coal India stock:

The share price of Coal India has witnessed a strong buying demand from the crucial support area of Rs. 165-170 being the confluence of the 200 days EMA
(currently placed at Rs. 170) and the rising demand line joining lows of December 2021 (Rs. 139) and February 2022 (Rs. 149) signaling strength and positive price structure
• The stock during current week has registered a breakout above the last four weeks range ( Rs. 192-
165) signaling resumption of up move and offers fresh entry opportunity
• We expect the stock to continue with its up move and head towards Rs. 213 levels in the coming weeks as it is the 123.6% external retracement of the last
decline (Rs. 209-165)
• The stock has immediate support at Rs. 185 levels being the 61.8% retracement of the current up
move (Rs. 178-199)
• Among the oscillators the daily MACD is in up trend and has recently generated a buy signals
thus validates positive bias.

 

Stock if held for long also is sound on its dividend stream:

The PSU Maharatna company is also a good dividend paying entity with a dividend yield over 8% considering the last Fy22 dividend of Rs. 17 per share.

Disclaimer: Markets are highly risky and volatile. The call above is by the brokerage and kindly do not consider it a recommendation to buy in the share.

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