Jindal Steel’s shares are in spotlight after securing the Saradhapur Jalatap East coal block

Jindal Steel & Power (JSPL) shares will be closely watched on Friday after the business won the Saradhapur Jalatap East coal block in the Ministry of Coal’s most recent commercial coal auction.

The mine, with an estimated resource of 3,257 million tonnes, is only 11 kilometers from JSPL’s Angul steel production, making it a valuable asset to the firm. JSPL secured the block with a 10% revenue-sharing proposal, minimizing its reliance on external coal sources and providing a consistent supply of raw materials for steel production. The purchase boosts the company’s backward integration approach, reducing risks associated with supply chain interruptions and pricing volatility.

By guaranteeing long-term fuel supply, JSPL improves operating efficiency while confirming its commitment to the “Aatmanirbhar Bharat” project, which is consistent with the government’s aim of self-reliance in essential industries. According to Trendlyne statistics, the stock’s average target price is Rs 974, up 6% from current market values. The consensus rating from 26 analysts for the stock is ‘Buy’.

Technically, the stock’s Relative Strength Index (RSI) is at 57.7; a value below 30 indicates oversold conditions, while a score above 70 indicates overbought situations. The Moving Average Convergence Divergence (MACD) stands at 13, above the center line but below the signal line. JSPL shares are now trading above their 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day simple moving averages (SMAs), but are still below the 150-day and 200-day SMAs. On Thursday, Jindal Steel shares finished at Rs 915.4 on the BSE, up 1.8%, while the benchmark Sensex rose 0.41%. The stock has fallen 11% in the previous six months, but has increased 70% in the last two years. The company’s market capitalization is Rs 93,384 crore.