⭐ Ultra Equity Advice #101 | Sell | Expected Profit 12-17% | Arijit Banerjee

  Sell    TATA STEEL  

Sell Range415 – 404
Target350 – 330
Duration20 – 25 Trading Days
Potential Return^12 – 17%
CP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
399.8SELL415 – 404350 – 33042520 – 25 Trading Days12 – 17%

# CP – closing price on Dec 05, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 375.
^ The returns are calculated based on CP#


Tata Steel is one of the world’s largest steel companies, manufactures and distributes hot and cold rolled coils and sheets, galvanized sheets, precision tubes, tire based wires, spring wires, wire rods, construction rebars and bearings. The company also offers steel doors, roofing sheets, plumbing pipes, tubes, corrosion-resistance steels etc. Tata Steel is one of the few steel companies that are fully integrated – from mining to the manufacturing and marketing of finished products. In Q2FY20, the company’s net income was dropped by 14.22% to Rs. 34,579.18 crore and Net Profit improved by 33.01% YOY to Rs.4,021 crore.

Stock Data
Sectoral IndexNifty Metal
52W High561.65
52W Low320.35
Face Value10
Relative Performance_Tata Steel vs Nifty Metal Index


  • The entire corrective price action since 2008 till today occurred in a well defined Symmetrical Triangle pattern as highlighted in the adjoining chart.
  • There is a false breakout in mid-2017, when price temporarily moves above the resistance level, but later retreats into the triangle as it started.
  • Presently, the stock price has placed near the upper edge of the sideways triangle. This upper edge also corresponds to the previous intermediate highs, which were tested multiple times since 2008, thereby making it a strong resistance.
Tata Steel Monthly Chart
Tata Steel Monthly Chart


  • Technical indicators are currently giving negative signals as Tata Steel closes below the short term (10 day EMA) and medium-term (20 day EMA) moving averages.
  • The momentum oscillator RSI gives trendline breakout, which warns us that the stock has lost its earlier upwards momentum.
  • The recent price development indicates an opportunity for a SHORT trade. Look to Short this stock as per the levels mentioned above.
Tata Steel Daily Chart
Tata Steel Daily Chart


Based on our short term tips for share trading, Tata Steel share price target will be 350 – 330 in the next few days.


1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.


The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).


The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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