Coal (I) made a big gap down from Rs.320 to Rs.300 in the first week of March and the trend is decidedly down. The share is racing down to the 2-year support level at Rs.250. On a rally from Rs.250, the share will face
strong resistance at Rs.300. Better avoid for the time being as the company made a hefty dividend payment in March '16 and unlikely to repeat it any time soon. The proposed disinvestment is also a dampener for the share.
Also, the off-take for coal by power companies is likely to be muted as they are sufficiently stocked and Coal may be required to hold higher inventory.
If you are looking for dividend yield, buy NMDC (on a correction to ~ Rs.90-92) or Nalco (@ ~ Rs.37).
G R CHARI
strong resistance at Rs.300. Better avoid for the time being as the company made a hefty dividend payment in March '16 and unlikely to repeat it any time soon. The proposed disinvestment is also a dampener for the share.
Also, the off-take for coal by power companies is likely to be muted as they are sufficiently stocked and Coal may be required to hold higher inventory.
If you are looking for dividend yield, buy NMDC (on a correction to ~ Rs.90-92) or Nalco (@ ~ Rs.37).
G R CHARI
No comments:
Post a Comment