In one of our earlier call on Ispat Industries dated 8th September, we had suggested a Chart view for Traders to Buy Ispat Industries between Rs.19.70 to Rs.20.30 with a Targets of Rs.23-24 and Stop Loss of Rs.18.50, with short-term trading horizon of 3-4 weeks (See Chart below).
Original Ispat Industries Chart View
On September 17, our target for Ispat Industries of Rs.24 was Achieved with a volume breakout. The stock spurted 17% with intraday high of Rs.24.35 and notched a closing at Rs.23.75, on the given day.
The rally in the stock was fuelled on the news that Ispat has agreed to sell about 10% equity stake to UK-based Stemcor for around Rs.250 crore to part-finance its growth plans. However, most of the fundamental updates are almost often reflected on the technical charts before-hand; just that the news trickles in at a later date.
In this case, a sudden spurt in volumes over the last 15-20 sessions, was an indication enough that the people knowledgeable of the rumours took early position in the counter, which was ably reflected on the charts. Someone has rightly said, ‘Charts don’t lie’.
Recommendation Updated:
- Short-term Traders can book full gains at Rs.23.75 to 24.
- However, Medium-term traders who want to feed on the positive news of stake sale buzz, can book partial gains to the extent of 60% of their holdings at current prices, and stay invested for the remaining 40%, with a Trailing Stop Loss of Rs.22, and Target of 26-28 over next 1-2 month. Fresh positions not advisable at this stage though.
Ispat Industries Updated Chart Presentation
Disclaimer: The above Chart view and presentation is for educational purpose.This site and author assumes no responsibility or liability of any kind for your trading and investment decisions based on the above views.
