TATA SPONGE IRON LTD .................. BUY ..................... CMP ₹920.50

Dalal Street Investment Journal - - EQUITY -

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)

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