Saturday, 13 November 2021

Tatasteel share price and trade plan

Tata steel share - A high probability investment/ trading plan 

I considered below four points as an investment story for tata steel 

1. Tatasteel posted a robust net profit in the September quarter.

2. TV Narendran, MD, Tata Steel interview encourages investors and traders to continue investing in the steel industry. In the interview, Mr. Narendran explains the plan of debt reduction and further infusion of CAPEX. 

3. There is a significant investment in steel and associated mining and metal sectors. 

According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), between April 2000 and March 2021, Indian metallurgical industries attracted FDI inflows of US$ 14.74 billion. 

According to Mr. Seshagiri Rao, Joint Managing Director of JSW Steel Ltd., in FY22, steel demand is expected to increase by 17% to 110 million tonnes, driven by rising construction activities.

4. Ruling planet Saturn for the steel industry.

Tata steel share price 



Technical analysis 

Price is in a symmetrical triangle.


My trade plan on tata steel share:

1. Buy levels are 1370  (breakout) and support levels like  1250, 1200. 

2. Invest more once the price breaks the previous week's high. 

3. Invest near support levels after a decent pullback.

4. Sell near ATM call once I acquire around 425. 

Please read my previous article on Tata steel's latest news

 

Reference: 

1. Steel prices will remain volatile but uptrend to continue: Tata Steel MD. Read the full article on Economictimes

2. Iron & Steel Industry in India. Click the link IBEF to read the whole story.



 

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