SAIL’s rally adds to a strong year for the state-owned steelmaker, whose stock has climbed 24% in 2025 and 317% over the past five years, underscoring renewed investor confidence in the metal sector.
Bulls tighten grip on SAIL ahead of earnings
Analysts say the recent price action reflects a constructive technical setup supported by strength across key moving averages. “SAIL is currently displaying a constructive setup on the weekly chart, maintaining its position above key moving averages — a sign of sustained strength and accumulation at support levels,” said Hardik Matalia, Derivative Analyst at Choice Broking.According to Matalia, the stock has been consolidating within a narrow range, with immediate support placed around Rs 125–Rs 128, which has consistently acted as a base for recent price action. “On the upside, resistance is visible around Rs 132–Rs 134, followed by a more decisive hurdle near Rs 137–Rs 140. A sustained move above these levels could trigger a fresh breakout, opening the door for a medium-term upside target of Rs 145–Rs 150,” he said.
Matalia noted that the trend structure and moving average alignment indicate momentum remains in favour of the bulls, supported by improving sentiment within the broader metal space. “Traders may consider buying SAIL in the Rs 128–Rs 130 range, with a stop-loss at Rs 124 on a closing basis and upside targets of Rs 145–Rs 150 in the coming weeks,” Matalia said.
Technicals signal bullish undertone
From a technical standpoint, SAIL is trading above all eight key simple moving averages (SMAs), including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day SMAs, indicating bullish undertones across time frames.The Relative Strength Index (RSI) stands at 52.8, suggesting the stock is neither overbought nor oversold, while the Moving Average Convergence Divergence (MACD) sits at -0.3, below both the centre and signal lines, typically a bearish signal.
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SAIL Q1 earnings flashback
The latest rally also builds on SAIL’s strong June-quarter performance, when the company reported a multi-fold rise in consolidated net profit to Rs 744.58 crore from Rs 81.78 crore a year earlier, driven by improved operational efficiency, stronger cash flows, and robust sales volume growth.
Consolidated income during the April–June 2025 period rose to Rs 26,083.90 crore, compared with Rs 24,174.80 crore in the same quarter last year, while total expenses increased to Rs 25,189.19 crore from Rs 23,871.60 crore.
Investors are now eyeing the September quarter numbers to gauge whether SAIL can sustain that earnings momentum amid firm domestic steel demand, global price recovery, and policy support for infrastructure spending.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
