Today's Pick

Tata Sponge Iron (₹653.8)

Yoganand D BL Research Bureau | Updated on January 13, 2018 Published on February 28, 2017

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Investors with a short-term perspective can consider buying the stock of Tata Sponge Iron at current levels. The stock gained 5.6 per cent accompanied with above-average volume breaking above an immediate resistance at ₹635 levels on Tuesday.

Since taking support at ₹490 in late November 2016, the stock has been on an intermediate-term uptrend. Following a sideways movement for more than a month, the stock resumed its uptrend on Tuesday. Moreover, the stock is trading well above its 50- and 200-DMAs. The daily as well as the weekly relative strength indices have entered the bullish zone from the neutral region. Further, both daily and weekly price rate of change indicators are featuring in the positive territory implying buying interest. The short-term outlook is bullish. The stock can extend the rally and reach the price targets of ₹680 and ₹693 in the forthcoming trading sessions. Buy the stock with stop-loss at ₹640.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on February 28, 2017
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