TATA SPONGE IRON LTD .................. BUY ..................... CMP ₹920.50
The stock of Tata Sponge is currently trading at ₹920.5. Its 52-week high and low stand at ₹938/ ₹474.95 made on September 12, 2017 and November 9, 2016, respectively.
The stock has closed above the ₹886 level for the first time on a monthly basis forming inverse Head & Shoulders pattern, though on the upside. In case it sustains above ₹886 till the end of September 2017, it could give a sharp upside thereafter. On the daily time frame, the stock has been trading in the range of ₹775 and ₹900 since April 2017. Recently, the stock gave a multiple resistance breakout at ₹900 and witnessed a pullback followed by a bounce back on September 12 candle with high volumes.
With this, we recommend a BUY on the stock for a target of ₹975 followed by ₹1000 and with a stop loss of ₹875. (Closing price as of Sept 12, 2017)