Steel Authority of India Limited Shares Gain Traction as Brokerage Sets Target of Up to Rs 220

Maharatna PSU metal stock Steel Authority of India Limited witnessed strong buying momentum after recent consolidation. Monarch Networth Capital maintains a Buy rating with a target price of Rs 200-220.

Shares of Maharatna public sector enterprise Steel Authority of India Limited experienced significant buying interest during Tuesday's intraday trading session, jumping nearly 4%. After reaching its 52-week high in May and undergoing a subsequent price correction, the metal stock has stabilized. According to technical analysis by Monarch Networth Capital, the stock has broken out of its recent consolidation phase, indicating sustained bullish sentiment in the counter.

Stock Performance and Intraday Movement
At 12:36 PM on Tuesday, the share price of Steel Authority of India Limited was trading 3.6% higher at Rs 185.8 per share on the BSE, bringing its total market capitalization to Rs 76,737.11 crore. During intraday trade, the stock touched a high of Rs 186.30 per share and a low of Rs 180.80 per share after opening on a positive note.

Brokerage Outlook: Accumulation Zone, Target, and Stop Loss
In a research report released on Tuesday, August 25, brokerage firm Monarch Networth Capital reaffirmed its Buy rating on Steel Authority of India Limited, highlighting a potential price target of Rs 200 to Rs 220 over a horizon of 3 to 4 months.

The recommended trading setup includes the following specific parameters

• Accumulation Range: Investors and traders are advised to accumulate shares in the Rs 170 to Rs 175 zone.
• Upside Target: Expected price trajectory targets Rs 200 to Rs 220 over the next 3-4 months.
• Risk Management: A strict stop loss should be placed below Rs 154 on a closing basis.

Technical Chart Indicators and Trend Analysis
The stock has taken robust support at a long-term trendline that directly aligns with its 200-day exponential moving average (EMA). Price action reveals a classic higher-high and higher-low technical structure, signaling strength.

Key technical momentum indicators further support the bullish outlook
• RSI (Relative Strength Index): The RSI indicator has sustained comfortably above the 50 level across both daily and weekly timeframe charts.
• MACD (Moving Average Convergence Divergence): The MACD line has formed a fresh bullish crossover on the daily timeframe while remaining above the zero line, signaling that upward momentum is likely to persist.

Historical Returns and 52-Week Range
Steel Authority of India Limited recorded its 52-week high of Rs 209.70 per share on May 29, 2026, while dropping to a 52-week low of Rs 118.10 per share on August 28, 2025. The company reports a return on equity (ROE) of 7.68%. Year-to-date in 2026, the metal giant has delivered returns of approximately 25.4%, despite experiencing a minor pullback of about 5.8% over the past three months.

What this means for you
Impact for Retail Investors:

• Portfolio Strategy: Existing holders or prospective buyers can use the Rs 170-175 range for phased accumulation while setting a stop loss at Rs 154 to control downside risk.
• Sector Momentum: Renewed buying in Maharatna PSU metal stocks signals positive sentiment across the steel sector for short- to medium-term position holders.

Questions & Answers

1. What is the new target price set for SAIL?
Monarch Networth Capital has set a target price of Rs 200 to Rs 220 per share for SAIL over a 3 to 4 month timeframe.

2. What is the recommended accumulation zone for SAIL shares?
The brokerage recommends accumulating the stock in the Rs 170 to Rs 175 price range.

3. What stop loss level is suggested for trading SAIL?
A stop loss below Rs 154 on a closing basis is recommended for risk management.

4. What has been the stock performance of SAIL in 2026 so far?
SAIL has delivered close to 25.4% returns so far in 2026, despite a around 5.8% decline over the last three months.

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