Coal India share price surged over 7 per cent to Rs 198 apiece on BSE, as company’s subsidiary Northern Coalfields Ltd is set to cross its production target of 119 million tonne for the current fiscal, and remains on track to achieve capital expenditure target of Rs 1,640 crore, PTI quoted officials as saying. The stock hit its 52-week high Rs 203.85 apiece last year in October. Analysts say that tightening global market supply, rising energy prices due to the current Russia-Ukraine crisis and achievement of production targets of FY22 have led to a strong rally in Coal India since the past 3-4 days. “Technically, Coal India looks overbought with a maximum upside target of 206. Immediate support will be at 184.” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com.
In the traded volume terms, 40.02 lakh shares exchanged hands on BSE, while 6.61 crore scrips traded on NSE so far in the trade. “On the daily chart, the stock is closing above the 100 SMA for the third time in a row, and on the monthly chart, the stock is about to break out on cup and handle candlestick patterns. All of the technical parameters, as well as the fundamental support, indicate that the price is about to rise in the short to medium term,” Kshitij Purohit, Lead Currency & Commodities, CapitalVia Global Research told FinancialExpress.com. Purohit added that short term resistance is at 198-203 levels and above that price will move towards 220 levels. Support for the stock is 179-167.
Analysts at Antique Stock Broking have recommended to buy Coal India shares, for a target of Rs 232, a potential upside of 25.5 per cent from last close. The company has already surpassed the target pegged by Prabhudas Lilladher. It has given an ‘accumulate’ rating to the stock.
The domestic research firm noted that Coal India displayed strong performance on sales volume over the last six months. However, delay in price hike of FSA (85% total volumes) remained a dampener. “On the balancing side, strong pick-up in E-auction realisations helped to negate the absence of increase in FSA prices partially. Underpinned by improved operational performance and better outlook on both FSA (likely hike post state elections) and E-auction prices,” it added.
The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.
