It is worth looking at the shares of Steel Authority, as the shares form a 12-week depth consolidation base of 23%. The current price is only 14% of its ideal purchase price of 151 INR. Aggressive investors could use any reduced surface sprout within the base as an opportunity to initiate a reduced position. A conservative approach may be to add actions to your watchlist so that you are ready to jump in if you go out at the traditional entry point.
The current trend of the ten-week moving average remains downward. However, if we look at a broader picture, the long-term average (40-week moving average) is on an upward trend. The ten-week moving average is above the 40-week moving average. The shares are trading at around 2.86% compared to the ten-week moving average.
Steel Authority has outperformed its shares compared to the wider market. It has a strong relative strength index of 85. In the last twelve months, shares have risen more than 281.2% compared to 44.8% of the Nifty500.
The relative strength line of stocks offers a lot of encouragement to investors. It has been progressing very well in the last four weeks. The general long-term trend of the line also has an upward trend. If Steel Authority can maintain this overrun, it could make sense as a CANSLIM operation.
Steel Authority shares have strong institutional support. The “A” rating / distribution rating represents a strong institutional buy over the past 13 weeks. Although the shares of the institutions fell in the last quarter, the number of institutions holding the shares increased at the same time. This shows a growing interest among institutions.
In terms of earnings, Steel Authority has an excellent EPS rating of 92, which indicates consistency in earnings. Earnings and stock sales have grown 48% and 1%, respectively, over the past three years. Its 3-year earnings stability is 99, on a scale of 0 to 99 (lower will be better). In the last five years, earnings and sales of shares have grown by 48% and 11%, respectively. The stability of profits at 5 years is 99. The return on equity of the last reported year is 10%.
Steel Authority’s current price has a -14% discount on its 52-week maximum price and 299% above its 52-week low price. The shares belong to the industrial group of steel producers, which has an excellent strength in the current market environment. The current classification of the industrial group is 30.
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