Stock to Watch: Tata Steel - Positional target price at Rs 1200-1250, this analyst says; outlook positive for company, steel sector
Tata Steel Stocks were trading in the green on Monday on the NSE around 11:40 am. The stocks were trading at Rs 1140.50, up by 0.40 per cent. The stock is positioned well to pick up from the existing levels over the next 1-2 months on the back of strong show by the company in the domestic and overseas markets
Tata Steel Stocks were trading in the green on Monday on the NSE around 11:40 am. The stocks were trading at Rs 1140.50, up by 0.40 per cent. The stock is positioned well to pick up from the existing levels over the next 1-2 months on the back of strong show by the company in the domestic and overseas markets.
Technical Analyst Nilesh Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking puts a target price of Rs 1200 and the next target price at Rs 1250 with a 1-2-month horizon. His advice in the stock is Buy on dips. He sees a strong support at levels of Rs 1080.
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Key triggers for Tata Steel shares:
- Jain is bullish on the metal sector and said that commodities prices in general are looking for an upside. Metals saw a bull run, followed by correction and later consolidation. The existing movement is more sideways now and may pick up going forward, he further said.
- Tata steel is a good stock with global play.
- Tata Steel India Crude steel production grew 55 per cent year-on-year (YoY) in Q1 of FY22 versus Q1FY21, the company has said in a release. The impact was due to the COVID-19 pandemic and the stringent nationwide lockdown.
- Tata Steel India deliveries increased by 42 per cent YoY
- Key segment highlights of domestic deliveries are automotive and special products’ segment.
- Deliveries increased by 7 times YoY against the estimated 3 times YoY increase in automotive OEM’s production in 1QFY22.
- Tata Steel Europe’s Steel production grew by 27 per cent YoY to 2.73 mn tons; Steel deliveries increased by 19 per cent YoY.
- Tata Steel Southeast Asia’s Steel production grew by 49 per cent YoY; Steel deliveries increased by 50 per cent YoY.
This stock hit its 52-week high of Rs 1246.85 on 12 May 2021 when the prices of metals were soaring. The stock has moved significantly over a 1-year period from the lows of Rs 324.55 it reached on 2 July 2020.
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