Tata Steel has support at Rs 500: SP Tulsian
Published on Friday, November 13th, 2009 at 10:57 PMAuthor: stockalert (2027 Articles)
Tata Steel has strong support at Rs 500, says Investment Advisor SP Tulsian.
“There are no hopes of the margin improvement for the metal sector that is Tata Steel, JSW Steel or maybe the Ispat Industries, Steel Authority of India (SAIL). Yes, we have been witnessing the volume growth. But I think the cap on the price is mainly because of the glut in the international situation because China is sitting on a surplus capacity of about 60-70 million tonne, the kind of total capacity that we have in our country. So that is not allowing the HR coil prices to rise in the international market and because of the import parity price even we need to, though the companies domestic producers are pushing in the quantity. But they are not able to improve upon the margin because that is what has been reflected into the Q2 results also. But I think all those things do not get reflected into the stock price on a monthly horizon, when a person is operating in F&O segment. But an investor having short sold at Rs 508, Rs 500 looks to be a strong support for the stock. I don’t think this is viable because whenever the share price corrects which we see or maybe in next week, we can see for the time being he may hold his short position, need not get panicky with the today’s rise. But in the next week when it comes to closer to his calls, his selling price, he should think of exiting it because this strategy cannot give him a very good trading profit.”
Source : MoneyControl
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