Sunday, April 12, 2009

Tata Steel must buy

Tata Steel


Tata Steel put up a strong show in the last two trading sessions of the week to close with a whopping 16 per cent gain.

The stock has already raced to our medium-term target of Rs 250 and oscillators in the daily chart denote that the momentum continues to be strong in the short-term.

As we have been reiterating, the medium-term range for this stock is between Rs 150 and Rs 250.   strong break beyond Rs 250 will give the next medium-term target of Rs 360.

If Tata Steel sustains above Rs 250 over the upcoming week, its short-term targets would be Rs 270 and Rs 318. Traders can buy on declines with a stop at Rs 248.  Next support would be at Rs 238 and Rs 222.

Our View :

Tata Steel is  astrong buy and hold for a week.  All the metal stocks closed higher and there is expansion of volumes which suggests that the uptrend will continue in the next week.  Book full profits around Rs.300 levels

Bought to you by


Intelligent Investor

Investment Advisory division of


Ravina Consulting

www.ravinaconsultants.com

BANGALORE 560048


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