JSW Steel Emerges as a Top Gainer in Nifty, Here’s Why!

The stock of JSW Steel is one of the top gainers in the Nifty50 index as on Thursday the stock shot-up 1.5%. The stock opened level of Rs 700.80 on NSE and it has made an intraday high of Rs 709.50.

The key catalyst for the stock emerging the top gainer is the Company has been declared as a “Preferred Bidder” vide communication dated May 15, 2023 received from the Directorate of Geology and Mining, Maharashtra on May 16, 2023, for Composite Licence of an unexplored Iron Ore mine (Surjagad 4 Iron Ore Block in Gadchiroli District) in the State of Maharashtra, in the Auctions held by the State Govt. of Maharashtra on May 12, 2023.

The highest final offer price by the Company to become a “Preferred Bidder” is 131.05% of average monthly prices of iron ore of different grades and quality published by Indian Bureau of Mines in the State of Maharashtra from time to time.

The Company will take all requisite steps as per the tender document to obtain Letter of Intent, all statutory clearances to execute the Lease Deed with Mine Development and Production Agreement (MDPA) and start the mining operations.

From a technical standpoint, though the stock is trading above its 50 and 200-DMA, it is trading below its important short-term moving average i.e. 20-DMA and moreover, the 20-DMA is trending downwards which is not a good sign for the stock. That said, the only saving grace for the stock emerge is that the 14-periods daily RSI has bounced back from the 40-mark and now, it is inching upwards.

The stock is expected to announce its earnings on May 19, 2023 and the stock’s 52-week high stands at Rs 783.50. Talking about the performance of the stock, the stock has delivered negative returns in the short term i.e. in the last one-month it is down by 2.35%, while in the long run i.e. in one year and three years, the stock has advanced 11.24% and a whopping 330%.