Nirmal Bang has advised traders to buy Tata Steel on dip with a stoploss of Rs 410.
“Buy Tata Steel on dips with stoploss of Rs 410. Resistance is seen at Rs 445 and if it maintains above Rs 445 then next target is Rs 470,” said the technical note.
US Markets ends negative. The support for the Sensex is 8850-8710 and the resistance to the up move is at 9140-9378 Nifty: (2807) the support for the Nifty is at 2770-2723 and the resistance to the up move is at 2823-3142
Europe was trading flat.
Asia is bonded to open flat to positive.
Expect Indian Markets to open in the same mannar.
Day Trading Ideas -
Jet Airways.
Buy above 163 for targets of 166 and 168
Sell below 156 for targets of 154 and 152
DLF
Buy above 174 for targets of 176 and 179
Sell below 171 for targets of 168 and 165
Tata Steel Ltd.
Buy above 179 for targets of 181 and 184
Sell below 172 for targets of 169 and 166
NIFTY Autogenerated Technical Analysis
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Tata Steel, India’s largest steel company, on Wednesday reported its first decline in quarterly profit in almost three years as slow demand saw the Tata group company report lower sales volumes for the first time in many years.
Tata Steel said standalone net profit, excluding its Anglo-Dutch subsidiary Corus, in the October-December period fell 56% to Rs 466.2 crore from Rs 1,068.6 crore in the same period last year, mirroring a trend seen in the third-quarter results of steel companies, including SAIL, the country’s second-largest steel maker.
Total revenue in the same period fell to Rs 4,735.7 crore compared with Rs 4,928.2 crore last year. Prospects for the next quarter does not appear to be bright either, its chief operating officer HM Nerurkar said.
“Compared to our peers, we have done well despite the fact that October steel was not moving at all. The next quarter looks equally bad. We will to improve our performance,” he said.
Tata Steel’s third-quarter earnings were eroded by a foreign exchange loss of Rs 126.80 crore and an 80% surge in raw material costs to Rs 1,611 crore. Steel sales dipped to 1.07 million tonne in the third quarter against 1.24 million tonne in the year-ago period.
Tata Steel is scheduled to announce consolidated results at the end of February, which would include Corus. The foreign subsidiary has already reported job losses due to a severe fall in demand in Europe. Corus has cut 3,500 jobs in Britain and has undertaken production cuts to trim costs, even as large steel users such as auto makers have reduced their purchases.
For the nine-month period, Tata Steel’s net profit rose 7% to Rs 3,742.4 crore while net sales grew 27% to Rs 17,595.4 crore. Globally, steel companies have seen a reversal in their fortunes, as demand from large steel users like car makers and the construction industry has fallen due to rising interest rates, ending an almost four-year long boom.
Steel prices have fallen sharply, prompting many companies to cut production and slash manpower. In India, however, demand for steel has held up relatively well with consumption still steady in the construction industry, though auto makers here also have been adversely affected. The Tata Steel stock gained 2.6% to close at Rs 176.85 in a strong Mumbai market on Wednesday - ET
US markets ended mixed.
The target for the Sensex is 8947-8845 and the resistance to the up move is at 9575-9750
Nifty: (2769) the target for the Nifty is at 2685-2404 and the resistance to the up move is at 2812
Day trading ideas
TCS
Buy above 526 for targets of 530 and 534
Sell below 512 for targets of 509 and 505
Infosys
Buy above 1238 for targets of 1243 and 1249
Sell below 1208 for targets of 1201 and 1196
Tata Steel.
Buy above 206 for targets of 209 and 213
Sell below 199 for targets of 196 and 193
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