Tata Steel....what's the word on the street?

C

crazyass

Member
#1
#1
The steel industry in India has been dealing with major problems since the past few months.
It has been interesting watching Tata Steel fall.... and analysts once predicted it may touch Rs 200 levels soon

My question to all you guys is ....is this a good time to buy Tata Steel for the long term? It closed at 215 levels today.
 
N

natjay

Well-Known Member
#2
#2
Tata Steel has been in a month-to-month fall right from its past year high in the 580 level and is now moving down towards 200. If one were to buy this stock, I'd personally look for close to the 280 or 300 levels before entering a long term buy. Stocks like this are inherently connected to the commodities market and manufacturing data (suuply/demand) both of which are currently under pressure.
 
Riskyman

Riskyman

Well-Known Member
#3
#3
Tata steel likely headed down towards 135-150 in the next few months. Maybe even lower towards 100 by a year or so.

Edit: Please keep this thread alive as people may want to bash me up for putting such low numbers on tata steel.
 
Riskyman

Riskyman

Well-Known Member
#5
#5
crazyass said:
@natjay: 300 levels? Won't that be a rather expensive buy? compared to now anyway?

@riskyman: I want to bash you up too. Lol, just kidding.
Any reasons for such low numbers?
Click to expand...
Lots of reasons. One of them being very weak demand. Steel industry globally has slowed significantly and the chinese mills will cut prices to survive. Tata steel cannot compete with the chinese. Same with steel originating from the black sea region. They are in the dumps and cutting rates. That leaves Indian markets and some middle eastern/SE asian markets which are not flourishing at the moment.

Dependence on imported coal, rupee depreciation, interest costs etc etc will have an impact on margins. Chartwise stock broke neckline of a H&S pattern on the weekly and and now trading just above previous support. A break of this support at around 200 levels is not good. The H&S target on this should be around 100.
 
D

Dax Devil

Well-Known Member
#6
#6
When it fell through 264, 145 came into focus automatically. Given the global markets doomsday scenerio at present, the abyss just got too deep to focus. Getting bouts of Acrophobia, so to speak! :D
 
C

crazyass

Member
#7
#7
Riskyman said:
Lots of reasons. One of them being very weak demand. Steel industry globally has slowed significantly and the chinese mills will cut prices to survive. Tata steel cannot compete with the chinese. Same with steel originating from the black sea region. They are in the dumps and cutting rates. That leaves Indian markets and some middle eastern/SE asian markets which are not flourishing at the moment.

Dependence on imported coal, rupee depreciation, interest costs etc etc will have an impact on margins. Chartwise stock broke neckline of a H&S pattern on the weekly and and now trading just above previous support. A break of this support at around 200 levels is not good. The H&S target on this should be around 100.
Click to expand...
From a buyer's perspective... I am feeling rather happy. This then, as far as I can tell, would be a time to "wait and watch" steel. A turnaround may come...but not anytime soon as you say.

@Dax Devil: 145 came into focus? how so specific?

EDIT: Look what I just found. An article posted 2 hours ago!
http://www.moneycontrol.com/news/business/steel-sector-revival18-24-months-govt_3237801.html
 
Riskyman

Riskyman

Well-Known Member
#8
#8
crazyass said:
From a buyer's perspective... I am feeling rather happy. This then, as far as I can tell, would be a time to "wait and watch" steel. A turnaround may come...but not anytime soon as you say.

@Dax Devil: 145 came into focus? how so specific?

EDIT: Look what I just found. An article posted 2 hours ago!
http://www.moneycontrol.com/news/business/steel-sector-revival18-24-months-govt_3237801.html
Click to expand...
Well... From my experience, I could say only one thing. Buy strength and sell weakness. Never the opposite. Point is, look at steel when the industry has consolidated and the revival is on. If you are patient enough and if your looking at holding stocks for 5-10 years then I will say that you will find tata steel at much better prices. Its a well run company just going through a bad economic cycle.

As for the link you posted... Your eyes will only see what you seek :D:D

EDIT: BTW, Its very difficult to pick the bottom.
 
You must log in or register to reply here.
Thread starter Similar threads Forum Replies Date
MSN1979 Intraday Tata Steel Equities 17
navaneetha.007 TATASTEEL or SBIN which is better to trade this month? Day Trading 4
C Cairn india or tata steel General Trading & Investing Chat 9
S Tata Steel to sell Mumbai land to Oberoi Realty for Rs1,155 crore Equities 0
A sell tata steel Introductions 5

Similar threads