To me, TATA STEEL is the ultimate funny, yet one of the most profitable (from the trading point of view) scripts on the Indian bourses. It runs up like some fierce animal chasing it and many analysts predict that it will cross 900 or 1000. Then it reverses and most analysts immediately give a sell call, forgetting what they said a day or a week back. And TATA STEEL then falls like a heavy iron ball will roll downhill, gathering momentum as it falls further. Then around 350-400, it stabilizes and again goes up after a few days. People who had understood this cyclical nature of TATA STEEL have made lot of money both ways.
Fundamentally, this is a good stock and current price of 595 is not too high. At present though the 3 month chart is showing a triangle pattern with the triangle's peak somewhere near 730. 500-550 forms the base of the triangle. Usually a triangle pattern completes itself. So if you enter TATA STEEL, enter only near 520-530, not above that. And then you can get back to levels of 680-700 in 6-8 months.
But if you are an investor and like the STEEL sector, go for JSW STEEL or MONNET ISPAT. I have recommended these as long term buys to the group a few weeks earlier. Buy them in small quantities on dips and corrections and add more on further dips and they can remain in your portfolio for a long term perspective of 12-18 months. TATA STEEL is not a portfolio stock, just a trading one.
On Fri, Oct 29, 2010 at 10:27 AM, ____ wrote:
| Sir
Greetings. Kindly share your opinion regarding TATA STEELS. I am a long term investor. It is a good time a initiate a fresh buy on TATA STEELS? My wife bought SONATA SOFTWARE yesterday based on your views. Thanks for your valuable suggestions all along and god bless. |
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