Jindal Steel Breaks Key Support - What Next?

Jindal Steel has witnessed a sharp sell-off, falling 4.81% today to close around ₹1,010. The stock broke below the ₹1,090–₹1,110 support zone, which had been an important short-term base. The breakdown is technically significant because the stock is now trading below all major moving averages — 10 EMA at ₹1,090.9, 20 EMA at ₹1,110.4, 50 EMA at ₹1,118.9, 100 SMA at ₹1,118.9 and 200 SMA at ₹1,137.2. This indicates broad-based weakness across short- and long-term trends. Momentum indicators are also bearish. RSI has dropped to around 27.5, entering oversold territory, while MACD remains negative. ADX at around 25 suggests the current trend has enough strength to remain important. The immediate level to watch is ₹1,000, which was tested today with a low of ₹1,001.10. A decisive close below ₹1,000 could open the door towards the ₹950–₹900 zone. However, the deeply oversold RSI means a technical bounce is possible. For any meaningful recovery, the stock needs to reclaim ₹1,090–₹1,110, followed by ₹1,118–₹1,137. My view: The structure remains bearish after today's breakdown. ₹1,000 is the key psychological support, while ₹1,090–₹1,110 has now turned into an important resistance zone. Disclosure: The author may have a financial interest in the securities discussed. The views expressed are personal and may change without prior notice.