Sunday, August 7, 2022

Tata Steel Now Just In 100 Rupees, Can We Buy?

Friends, today we are going to discuss one of the leading and trusted company that is TATA STEEL Ltd. Recently the company has split the share by 1:10 and increased share quantities. The share price was around 980 and it started to trade at around 98 rupees. Now new long-term investors will attract to this price and start to invest in it. As per our view, current levels are good for investors, let's focus on technical charts and fundamentals.

Monthly Chart: On the major time frame price is trading in a downtrend and continuing the downward channel as shown in the below chart. However, if we compare the last two weeks candle then there is a Bullish Engulf that has been confirmed. That is a good sign for up moves, the stock currently trading near the resistance of 108-110. Once it crosses then we will see the levels of 120/122 in a few days. Still stock price needs to break channel for big up moves.

Weekly Chart: After taking the rest of 4 weeks stock price has shown a good rally in the last week and confirmed Morning Star. Before going up we are expecting some profit booking then it will go up. If the price comes down near 100 then it will be a good opportunity to accumulate the shares.

Fundamental: The company has a presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products. The business line is good and products are demanding in the future.

  • The company is on the second rank in the steel sector.
  • Net profits are increasing quarterly & yearly.
  • The company is increasing its assets.
  • The cash flow is very strong.
  • 75% of shareholders are Promoters, FIIs, and DIIs.
  • Return on equity is around 42%.
  • Stock is providing a good dividend yield of 4.75%.



Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.

No comments:

Post a Comment