Coal India shares have been rising since the start of the current fiscal year 2023-24. The PSU stock bottomed out at approximately 210 per share on the NSE at the end of March 2023, and it has since been soaring to new 52-week highs on a regular basis. It reached a new 52-week high this week on Tuesday and Wednesday, but retraced after a profit-booking trigger on Wednesday.
During early morning trading on Friday, the share price of Coal India was once again on the radar of stock market bulls. Coal India's share price rose Thursday, approaching its 52-week high of 371.80 per share.
According to stock market experts, Coal India shares are rising as the Indian economy grows. Because Coil India Limited has a monopoly on coal supplies, the market anticipates that expansion would feed demand for thermal power, resulting in increased demand for coal. According to them, Coal India shares are looking optimistic on the chart and may rise to $400 per share in the near term.
Coal India Share Triggers
Avinash Gorakshkar, Head of Research at Profitmart Securities, commented on the causes that are driving the Coal India share price surge, saying, "After strong economic numbers, the growth theme is working in the Indian stock market." As growth fuels demand for thermal power, the market anticipates an increase in coal demand. Because Coal India Ltd has a monopoly in coal delivery, the market anticipates an increase in Coal India Ltd's business volume."
Avinash Gorakshkar went on to say that Coal India Ltd has boosted production, indicating that the PSU is well-equipped to fulfill the growing demand for coal by the major power producers. According to Gorakshkar, budget 2024 is also projected to be a growth-oriented budget, and so Coal India shares are expected to remain bullish for at least the next month.
Share Price Objective for Coal India
Sumeet Bagadia, Executive Director at Choice Broking, predicts additional gains in Coal India shares, saying, "Coal India shares are looking bullish on chart patterns." Those who own this stock may continue to hold it with a trailing stop loss of $345 per share. Coal India's share price may reach 380 and 400 per share in the near future." Bagadia recommended new investors to stick to their 'buy on dips' strategy for the aforementioned aim, with a rigorous stop loss of $245 per share.
