Chart Of The Day : SAIL/STEEL AUTHRITY OF INDIA LTD. Buy/Sell/Hold? Short - Mid Term View 17 Feb 2017 For Trading Positional Technical Analysis Recommendation

Sail or Steel Authority Of India Ltd.
CMP-60.50
Recommendation: Strong buy
Duration : Short, Mid Term, Possibly long term as well.

Arguements: 
While the fundamentals of the steel sector and that of the particular company are improving, it will be a detailed subject of explanation so we will limit ourselves to the recommendation and some technical analysis.
The stock has bottomed out around 35 levels from February 2016 from where the present rally in stock market has started.
After steadily rising with a clearly visible rising trend-line, the stock gave breakout with new yearly high in last month by crossing 55 levels. Which is now a support level only.
On monthly chart also the stock is looking excellent and a level of 100 is not far. And crossing 100 will take the stock into new bull market and levels of 300 are possible.

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VISION always pays in investing: Must read for all

Sail has given 2240% return to those who have stayed invested for 10 years.

Many companies that were written off not just by the retail investors but by institutional investors as well during the previous bear assault have emerged victorious after financial restructuring. These companies have given super normal profits to their shareholders.
This could be, therefore, the right time for bottom fishing.
This strategy, however, has its own rules. The first and most important being investing with a long-term commitment. Investors should have good withholding power as wonders cannot be expected in the short term (we at Megha Investments and Research team delivered 205% in one year), when the stock begins to come out of the downturn, the investment could multiple in a matter of days. But investors should not be greedy at that point of time. May be, they can liquidate whatever they have invested, but should not completely exit as the stock can give mind-blowing results.
Look at the government owned Steel Authority of India (Sail), the country’s largest steel manufacturer. This stock was trading at sub-Rs 10 level for months in 1999. It recorded a low of Rs 5.50 and a high of Rs 11 in calendar year 1999. The scenario remained more or less same for the next three years: 2000 (in the range of Rs 5.20 to Rs 11.50), 2001 (Rs 3.95 to Rs 8.25), and 2002 (Rs 4.70 to Rs 13.30). This was the period when the steel behemoth was stuck with huge debt of over Rs 21000 crore end fiscal ended March 1999 (FY 1999) — the highest during the last 10 years. Further, interest outgo was also the highest at over Rs 2000 crore.
Since FY 1999, the debt level has come down consistently to Rs 3045 crore end 2008. From the second half of FY 2003, the stock started recovering smartly, emerging in a new avatar after a massive restructuring. The rewards for keeping faith with the company during troubled times are absolutely amazing. The stock is currently trading at around Rs 234, which translates into a gain of 2240 % for those who had bought it at Rs 10 before less than 10 years!
Investors should, thus, be ready to bear the pain of financial restructuring for long duration as it generally means no dividend and may be capital reduction. The challenge for investors is to narrow down companies that have a good financial track record with years of existence, providing confidence about its corporate governance norms. Last, stay invested for years to capture the real upside.
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Retail and institutional investor focus only on ready-mix opportunity like current dis-investment theme and underperforms the market.
You can get more detail by clicking this link: http://www.meghainvestments.com/2010/01/4-ace-pms-portfolio-of-4-stocks-for.html

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