Buy Jindal Steel as it looks oversold.
1) Jindal steel has been on downward trend. It fell down from 425 Rs to 370 Rs in two weeks time. The stock looks oversold now.
2) The technical chart indicates that it has a support around 375 Rs.
3) Open Interest has increased by 8.5%. Around 6.5 Lacs shares have been added today.
4) 380 Call and 400 Call for Feb has seen maximum increase in Open Interest, which indicates the upside limited for the stock.
4) 360 Feb Put has less build up which indicates support around these levels.
5) Thus, we recommend to buy Jindal Steel around 375 with stop-loss of 367 and target price of 386.
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