Have investors found a diamond in Jindal Stainless?

Jindal Stainless seems to be a buzzing stock in the markets as an increase in the volume of the company’s scrip has been witnessed recently. On Wednesday, gaining for the third straight trading session, the stock of the company jumped by more than 6 per cent intraday.

The shares of iron and steel product companies were in the spotlight after the government imposed provisional countervailing duty (CVD) on stainless steel flat products, imported from Indonesia to protect the domestic markets.

Today, shares of JSL Ltd made a fresh 52-week high of Rs 58.25 per share on BSE.

It is one of the trending stocks on BSE due to unusually high volume, which, according to the company’s clarification filed, is solely due to market conditions.

The scrip has gained by almost 30 per cent in the last three trading sessions thus, making it the longest-gaining streak in a period of two months, while it doubled during the last six months. Though the scrip has gained by 42.64 per cent on a YTD basis, it has nearly tripled, staging a significantly positive recovery from its 52-week low of Rs 22.30 on March 24, 2020.

Some analysts believe that the stock is in the overbought territory with a relative strength index (RSI) at 76.52.

On Wednesday, the scrip was trading at Rs 55.95 per share, up by 6.07 per cent or Rs 3.20 per share against a 0.61 per cent decline in S&P BSE Sensex.