Tata Sponge Iron Ltd – Recommended Stock of the Week
Tata Sponge Iron Limited (TSIL) is engaged in the production of sponge iron by direct reduction method of iron ore and generation of power from waste heat. The Company operates through two segments: manufacture of sponge iron and generation of power. The Company manufactures sponge iron by Tisco Direct Reduction (TDR) technology. The Company operates over two power plants with a combined generation capacity of approximately 30 megawatts that generate power from waste heat. The Company has its manufacturing facility at Bilaipada in Joda Block of Keonjhar District in Orissa.
SHORT TERM PERSPECTIVE
|Stop Loss (SL)||Rs. 870|
|Target Price||Rs. 1020/1050|
|Time Horizon||2-4 Weeks|
On the technical front, stock has given a range breakout above 900 mark, earlier stock was trading in a range (780-900) from last couple of months. Intermediate and short term trend is up in this stock, Increasing in volume at current juncture also indicating that stock can move higher from current level.
As of now stock is trading above all major moving averages and all oscillators indicating in a favour of bulls, so one can initiate a buy position at current levels with a stop loss of 870(closing basis) and respected target seems 1020-1050. Time frame should be 2-4 week.
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