Steel Authority Of India Ltd

Profile
Steel Authority Of India Ltd
Ispat Bhawan
40 Jawaharlal Nehru Road
Kolkata, 700071
India
Phone: 91 33 2288 3810
Fax: 91 33 2288 6183
Website: http://www.sail.co.in

Sector: Basic Materials

Industry: Steel & Iron
Business Summary
Steel Authority of India Limited, a steel-making company, manufactures and sells iron and
steel products to the construction, engineering, power, railway, automotive, and defense
industries in India. The companys steel products include rails and crane rails, structurals,
crossing sleepers, wire rods, and plates products; blooms, and NWS slabs and billets; and pig
iron products, as well as coal chemicals and processed slag products. Its steel products also
comprise HR coils/sheets/plates, CR coils/sheets, GP coils and sheets, and GC sheets;
merchant products, skelps, wheels and axles, and semis products; and ERW pipes, electrolytic
tin-plates, silicon steel sheets, and spiral weld pipes. In addition, the company offers beams,
channels, angles, and bulb and Z bars; galvanized sheets; carbon and alloy constructional
steels, case hardening steels, die blocks, creep resistant steels, spring steels, and Mn steels;
austenitic, ferritic, martensitic, and low-nickel stainless steel products; special steel products;
and carbon ferro manganese and silico manganese products. Further, it produces and sells
magnesite, magnesite-chrome, chrome-magnesite, and magnesite-carbon bricks, as well as
bulk and monolithics, dunite and dunite fractions, and ground calcined magnesite products.
The company also exports its products primarily to Japan, China, Korea, Taiwan, Vietnam,
the Philippines, Singapore, Malaysia, Thailand, Indonesia, Australia, Mexico, the U.K,

Germany, France, Belgium, Italy, Spain, the Netherlands, Portugal, Sudan, Oman, the U.A.E,
Myanmar, Bangladesh, Sri Lanka, and Nepal. Steel Authority of India Limited was founded
in 1954 and is headquartered in Kolkata, India.

Source: Yahoo Finance

Closing price as on 16th Feb 2015 74.90

EMA (200) 78.05

52 week high 112.90

EMA (50) 77.45

52 week low 54.05

Interpretation
The primary trend of the stock i.e. the long term trend, indicated by the 200-day EMA
is a slow moving uptrend and is flat towards the end.
The medium term trend of the stock, indicated by 50-day EMA peaked at Rs. 89.54 on
07th July 2014 and since then has seen a fall.
The 50-day EMA crosses the 200-day EMA on 10 th February 2015 and the stock
prices are below the crossing point which shows a bearish trend.
A head and shoulder formation is seen in the chart from 20 th May 2014 to 9th July
2014 wherein the price of the stock reaches all time high at Rs. 112.90 and then
steadily slows down across the neckline of the formation indicating a trend reversal in
the pattern.
Hence the recommendation would be to SELL the stock.

Indicators
Rate of Change

Source: Yahoo Finance

The ROC line is below zero line indicating a selling signal.

Moving Average Convergence and Divergence

Source: Yahoo Finance

The MACD line is below zero line resulting in negative histogram which again
indicates a strong selling signal.

Relative Strength Index (RSI)

Source: Yahoo Finance

The RSI line is above 30 and is observed rising which signifies a buying signal.
Therefore with two of the above technical indicators indicating a strong SELL signal
the recommendation is SELL.