Technical Analysis: JSW Steel, Sun Pharmaceutical Industries and UPL


JSW Steel (₹732)

Short-term outlook bearish

JSW Steel stock is on a decline since mid-September. It began falling after facing the barrier at ₹830. Last week, the stock witnessed good selling momentum which resulted in the breach of few supports. Consequently, the trend has turned bearish for the short term. As per the charts, there is a chance for the stock to see a corrective rally to ₹750.

But eventually, it is expected to resume the downward path. Bears are likely to drag the price lower to ₹660. Hence, one can short JSW Steel now at ₹732 and also on a rise to ₹748. Keep initial stop-loss at ₹785. When the price slips below ₹700, tighten the stop-loss to ₹730. Further, alter the stop-loss to ₹700, when the stock falls to ₹680. Take profits at ₹660.

Sun Pharmaceutical Industries (₹1,111.4)

At a range bottom

Sun Pharmaceutical Industries stock has been tracing a sideways trend, between ₹1,100 and ₹1,160, since August this year. By closing at ₹1,111.4 last week, the stock is now near the range bottom of ₹1,100, a support. This increases the chances of a rebound, especially considering that the broader trend is bullish. Moreover, the 20-week moving average lies near ₹1,100, adding strength to the support.

So, we expect the stock to see an upmove from here, at least until ₹1,160, in the coming sessions. Hence, traders can buy shares of Sun Pharmaceutical Industries now at around ₹1,111. Place initial stop-loss at ₹1,090. Revise this up to ₹1,120 when the stock touches ₹1,140. Exit at ₹1,160.

UPL (₹558.8)

Makes lower lows

UPL’s stock began depreciating in early 2023. Having failed to overcome the hurdle at ₹800, it took the way South. Last week, the scrip declined below an important level of ₹585, thereby opening the door for further downside. Following the break below ₹585, there is a good chance for UPL’s price to retest ₹585 this week, before falling further.

Post this, the stock can resume the fall and is highly likely to hit ₹500 soon. So, we suggest going short on UPL at the current level of ₹559 and add shorts if the price inches up to ₹585. Place stop-loss at ₹610 initially. Move this lower to ₹555, when the stock moderates to ₹530. Further, move the stop-loss down to ₹530 when UPL share price softens to ₹515. Liquidate all shorts at ₹500.


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