Coal India has broken its short term resistance and sustained over it on daily closing basis. The gas shortage in international market has led to China and few european countries commence operation of coal based power project. This has led to demand boost in international market and hence price of Coal. As such there is a shortage of coal from Indian coal mines operated by Coal India which is topped up by the fresh demand from Power plants (which are using imported coal and is in shortage). These projects will use blending as a method with reduced capacity operation since the loading of the units will be capped due to Ash handling capacity.
Coal India is likely to rise further. It is a buy. The traditional resistances and supports are marked on the charts. Analysis for academic purpose only.
Coal India is likely to rise further. It is a buy. The traditional resistances and supports are marked on the charts. Analysis for academic purpose only.