Medium Term Outlook on Tata Steel No ratings yet.

Tata Steel is one stock which had been under performing since last 3 years and has been in an intact downtrend making the stock touch lower levels with time propagating. In 3 years the stock lost almost 70 % from 700 odd levels to touch lows of around 200 odd levels in July 2013.

The dismal performance of the stock was due to crisis in steel industry and in spite of the fundamentals of the company there were no strong buyers for the stock. However, things have certainly changed for the industry and in turn for the company stock and for that matter, all the metal counters have bounced back from their lows.

Technically, Tata Steel has made a V shaped recovery on charts since August 2013 more like other metal counters. The stock has gained approximately 85% in 3 months time. Sounds like it already had its run. Not exactly. The counter is poised for more upward movement and for medium term investors/traders , its a ‘buy and hold’ counter.

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Author: Traders' Chowk

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