Can I buy shares of Tata Sponge?
AVOID TATA SPONGE IRON FOR NOW
Tata Sponge is currently trading at Rs 836. Its 52-week high/low stand at Rs 900/Rs 474.95 made on April 11, 2017 and November 9, 2016, respectively. After hitting its 52-week high, the stock witnessed gradual lower tops and lower bottoms. The stock gave a downward sloping trendline breakout on July 5, but witnessed consolidation thereafter. Lower volumes and 14-period RSI trailing at 53 too suggest lack of momentum for now. The stock is trading at its 21-day EMA support level and hence may turn around if it breaches the support level of Rs 818. Hence, we suggest you to avoid for now and enter only after the stock hits Rs 857 level on a closing basis.