JBF Industries – Technical Analysis
JBF Industries saw sharp jump in its market cap but gave away quite a good amount of the same and yet managed to be one of the best performers on the bourses. The scrip that was quoting at Rs 27 on December 29 shot to Rs 42 on January (intra-day) giving appreciation of 55 per cent in just five trading days. But it has take beating on the bourses and now available at Rs 35. We expect the scrip to take further beating, as there was no major fundamental reason for the same to move up on the bourses. One of the theories for justification for the scrip to surge was that the company would benefit from the fall in the prices of crude oil and in turn, its raw mate-
rials cost PTA. However, at the same time the compan9s finished product prices have also fallen hence we would suggest staying away from the scrip as it may not continue its momentum.
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