{"id":8068,"date":"2022-04-12T13:37:23","date_gmt":"2022-04-12T08:07:23","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=8068"},"modified":"2022-04-12T18:12:40","modified_gmt":"2022-04-12T12:42:40","slug":"sail-kunal-rambhia-technical-analysis","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/sail-kunal-rambhia-technical-analysis\/","title":{"rendered":"SAIL: Will This \u201cMaharatna\u201d Catch Up Metal Rally Soon?"},"content":{"rendered":"\n<p><em>This article is authored by Kunal Rambhia, a fund manager at The Streets, a private fund. He has been in the <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> market since 2010, performing various roles such as Associate Research Analyst, Research Analyst, and Associate <a href=\"https:\/\/www.tickertape.in\/blog\/portfolio-manager\/\">Portfolio Manager<\/a>. He has media appearances with CNBC and ET NOW. Kunal is also a visiting faculty in multiple colleges.<\/em><\/p>\n\n\n\n<p>As discussed in the past technical updates, markets offered wonderful bargain buying opportunities and many counters delivered wonderful returns so far. Still many opportunities are available at reasonable levels. Herein I share my view on one of such opportunities, <a href=\"https:\/\/www.tickertape.in\/stocks\/steel-authority-of-india-SAIL?checklist=basic&amp;utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">SAIL<\/a> (Steel Authority of India Limited), which is from the metals as well as PSE segment.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/sail-kunal-rambhia-technical-analysis\/#Monthly-price-action\" title=\"Monthly (price action)\">Monthly (price action)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/sail-kunal-rambhia-technical-analysis\/#Weekly-Fibonacci-RSI\" title=\"Weekly: (Fibonacci + RSI)\">Weekly: (Fibonacci + RSI)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/sail-kunal-rambhia-technical-analysis\/#Daily-price-action\" title=\"Daily: price action\">Daily: price action<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/sail-kunal-rambhia-technical-analysis\/#Daily-Ichimoku\" title=\"Daily: Ichimoku\">Daily: Ichimoku<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/sail-kunal-rambhia-technical-analysis\/#Daily-MACD\" title=\"Daily: MACD\">Daily: MACD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/sail-kunal-rambhia-technical-analysis\/#Ratio-chart-SAIL-with-Nifty-Metal\" title=\"Ratio chart: SAIL with Nifty Metal\">Ratio chart: SAIL with Nifty Metal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/sail-kunal-rambhia-technical-analysis\/#Ratio-chart-SAIL-and-Tata-Steel\" title=\"Ratio chart: SAIL and Tata Steel\">Ratio chart: SAIL and Tata Steel<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/sail-kunal-rambhia-technical-analysis\/#Putting-it-all-together\" title=\"Putting it all together\">Putting it all together<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Monthly-price-action\"><\/span><strong>Monthly (price action)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"476\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/1-1024x476.png\" alt=\"\" class=\"wp-image-8069\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/1-1024x476.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/1-300x139.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/1.png 1342w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>On the monthly chart, we can see the dream rally between 2003 to 2007. Since then, the price remained in the downtrend, making a series of lower tops and lower bottoms between 2008 to 2020. The second dream rally in Indian equities was seen after 2020, where SAIL broke out of consolidation (<em>Falling expanding wedge<\/em>) formation. This was the first sign of a trend reversal from down to up after 12 yrs. After the breakout, the price retested the pattern breakout zone and NOW again showing uptick, which is offering the best opportunity to capture the newly emerged rally.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-Fibonacci-RSI\"><\/span><strong>Weekly: (Fibonacci + RSI)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"485\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/2-1024x485.png\" alt=\"\" class=\"wp-image-8070\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/2-1024x485.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/2-300x142.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/2.png 1342w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>After a massive positive rally, the price cooled off a bit. Volumes in uptick were pretty high compared to downtick. Price ended up forming a down channel. Recent price reversal is right from the 50% retracement zone (as per the Fibonacci Ratio) and the Relative Strength <a href=\"https:\/\/www.tickertape.in\/blog\/stock-market-index\/\">Index<\/a> has decisively crossed the 50 zone on the higher side and volumes are also picking up. <a href=\"https:\/\/www.tickertape.in\/blog\/relative-strength-index\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\">RSI<\/a>, being a leading indicator, has shown super strength and price is likely to follow the same direction : )<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Daily-price-action\"><\/span><strong>Daily: price action<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"484\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/3-1024x484.png\" alt=\"\" class=\"wp-image-8071\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/3-1024x484.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/3-300x142.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/3.png 1338w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>A prolonged downtrend on the daily chart seems to have come to an end. Price broke above the resistance line of <em>Falling wedge<\/em> a couple of days back, retested and continued uptick with good volumes. This confirms the first sign of trend reversal from down to up. If we just focus on the last price action, it also shows inverse H&amp;S, which is also supporting <a href=\"https:\/\/www.tickertape.in\/blog\/bull-market-investing\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\">bullishness<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Daily-Ichimoku\"><\/span><strong>Daily: Ichimoku<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"485\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/4-1024x485.png\" alt=\"\" class=\"wp-image-8072\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/4-1024x485.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/4-300x142.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/4.png 1337w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>During this entire downtrend, the <a href=\"https:\/\/www.tickertape.in\/blog\/ichimoku-cloud\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\">Ichimoku<\/a> Cloud was also offering constant resistance. Decisive breakout of cloud alongside Tenkan \u2013 Kijun Crossover, future positive cloud and Chikou span above the resistance line, ALL confirming a likely emergence of a bullish trend.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Daily-MACD\"><\/span><strong>Daily: MACD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"483\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/5-1024x483.png\" alt=\"\" class=\"wp-image-8073\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/5-1024x483.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/5-300x141.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/5.png 1336w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>Negative <a href=\"https:\/\/www.tickertape.in\/blog\/moving-average-convergence-divergence\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\">MACD<\/a> Crossover and <a href=\"https:\/\/www.tickertape.in\/blog\/moving-average-convergence-divergence\/\">MACD<\/a> below zero line during the end of August 2021 confirmed downtrend, which lasted for almost 7-8 mth. MACD (though being a lagging indicator) has confirmed bullish crossover alongside zero-line crossover, confirming a newly emerged trend.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ratio-chart-SAIL-with-Nifty-Metal\"><\/span><strong>Ratio chart: SAIL with Nifty Metal<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"485\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/6-1024x485.png\" alt=\"\" class=\"wp-image-8074\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/6-1024x485.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/6-300x142.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/6.png 1344w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>A ratio chart was clearly in the recent decline mode but halted right onto the support trendline. RSI coming out of an extremely oversold zone is just when the ratio chart is showing support, which aids SAIL\u2019s likely outperformance view over <a href=\"https:\/\/www.tickertape.in\/indices\/nifty-metal-index-.NIFTYMET?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Nifty Metal Index<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ratio-chart-SAIL-and-Tata-Steel\"><\/span><strong>Ratio chart: SAIL and Tata Steel<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"484\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/7-1024x484.png\" alt=\"\" class=\"wp-image-8075\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/7-1024x484.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/7-300x142.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/7.png 1342w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>One more ratio chart of SAIL and <a href=\"https:\/\/www.tickertape.in\/stocks\/tata-steel-TISC?checklist=basic&amp;utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Tata Steel<\/a> is plotted. More or less, the ratio chart has remained in channel formation. It is bouncing right from the lows of the channel, which is supporting a bullish view (outperformance) of SAIL over Tata Steel.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Putting-it-all-together\"><\/span><strong>Putting it all together<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Considering formations and observations on monthly chart\u2019s falling expanding wedge breakout and retesting, weekly RSI reversal and price bounce from 50% of retracement, daily chart\u2019s falling wedge formation alongside Ichimoku and MACD is supporting a bullish view. Ratio charts of SAIL with Nifty Metal Index and Tata Steel are supporting its outperformance in the time to come. One can consider this as a good mid-term bullish bet.<\/p>\n\n\n\n<p><em><strong>Statutory disclosure:<\/strong> Kindly note that this update is only for educational purposes. It is safe to assume that my personal position, my fund\u2019s position, my client\u2019s position and my relative\u2019s position may be open in the counter. Prefer to take the advice of your financial advisor before initiating any position.&nbsp;<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kunal Rambhia analyses SAIL (Steel Authority of India Ltd) using several charts and technical indicators. He suggests that the stock is a good mid term bullish bet.<\/p>\n","protected":false},"author":73,"featured_media":8080,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[9,1742],"tags":[1126,1582,799,297],"acf":[],"modified_by":"Anjali Chourasiya","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/TT-12-April-SAIL-Kunal-BB-01.jpeg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8068"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/73"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=8068"}],"version-history":[{"count":10,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8068\/revisions"}],"predecessor-version":[{"id":8089,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8068\/revisions\/8089"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/8080"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=8068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=8068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=8068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}