Buy Tata Steel in range of Rs. 392-402
Target: Rs. 475
Stop Loss: Rs. 355
Time frame: Three months
Derivatives & Quantitative Outlook
Metal stocks have been in a recovery mode and have showed significant resilience in the current market volatility. Stocks like JSW Steel have managed to retest their new 52 week high despite jittery market conditions, indicating the prevailing positive bias in the metal space. We believe stocks like Tata Steel will resume their uptrend on account of short covering.
The open interest in the stock declined sharply in June amid short covering. Since September, the stock has witnessed a downtrend with short additions. These positions have begun to be covered. We now expect momentum to be seen along with covering of short positions in the coming sessions.
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Shares of TATA STEEL LTD. was last trading in BSE at Rs.403.9 as compared to the previous close of Rs. 392. The total number of shares traded during the day was 834739 in over 12597 trades.
The stock hit an intraday high of Rs. 407.8 and intraday low of 394.6. The net turnover during the day was Rs. 335876928.