Tata steel — more downside than upside
Morgan Stanley published target of 95 Spot price for Tata steel earlier today.
Looking at poor state of Nifty (under 18000), and sharp increase in Tata steel price, we see more downside than there is upside, in Tata steel.
Also, Tata steel has rallied from 85 to 115+ already. Increase in iron ore price means REDUCED margins for Tata steel, not increase in their margins or price.
Tata steel can be sold into, if you see price rise; given that nifty is under 18000.
Looking at poor state of Nifty (under 18000), and sharp increase in Tata steel price, we see more downside than there is upside, in Tata steel.
Also, Tata steel has rallied from 85 to 115+ already. Increase in iron ore price means REDUCED margins for Tata steel, not increase in their margins or price.
Tata steel can be sold into, if you see price rise; given that nifty is under 18000.
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