Quant Pick - Tata Steel - ICICI Direct

Time frame: Three months

Derivatives & Quantitative Outlook

The Nifty has remained volatile since the beginning of the May series along with broader markets. From the metal space, Tata Steel witnessed a significant correction on the back of a sharp decline in metal prices amid fear of global recession. However, after the correction of almost 45% from the top we feel currently it is in a pullback mode as it reverted from its Put base. We believe the recent momentum seen in the stock will be followed by fresh longs in coming sessions.

Leveraged positions in the stock have declined noticeably till the current series as stock prices remained in a declining trend. However, since the early July series, the stock has been witnessing long accumulation where OI has risen marginally. The stock has been able to trade above its resistance level of Rs. 900, suggesting further upsides.

For details, click on the link below: Link to the report

Shares of Tata Steel Limited was last trading in BSE at Rs. 885.75 as compared to the previous close of Rs. 900.30. The total number of shares traded during the day was 708772 in over 25269 trades.

The stock hit an intraday high of Rs. 919.00 and intraday low of 880.50. The net turnover during the day was Rs. 630213436.00.

Source : Equity Bulls

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