Tata Steel has target of Rs 247-254: N Pillai

Neppolian Pillai of Modern Shares & Stock Brokers is of the view that Tata Steel has target of Rs 247-254.

Pillai told CNBC-TV18, "The 50-month average for Reliance is about Rs 1,325-1,450 in the cluster of simple and exponential moving average. So I think every rally is going to be registered there, Rs 1,450 is going to be the top for me in Reliance. So if you have already missed the move from Rs 980 to Rs 1,350 you have got absolutely no business going and buying that stock at this level, the last Rs 100 can come and go and your gain going to be again kept hanging in the stock. I think eventually after this averages are tested, I think Reliance will collapse to about Rs 875 because that was the target what I had in mind but it recovered Rs 100 above from their, Rs 980 itself. I think Rs 1,500 that is the maximum for the stock and after that you are going to see Rs 500-600 collapse coming in."

He further added, "Tata Steel went below 50-month at about Rs 440 and in the recent carnage it went below even the 200-month average. People say that the bull market is broken once the 200- day averages are broken; Tata Steel had gone and broken 200-month at about Rs 207. So I think every rally is just going to be a retracement rally. On the upside you could have a target of about Rs 247-254 but you have got to trade this stock you can not be investing in this stock."

"ITC will come down to about Rs 125; it came to about Rs 138 this time around. On the upside I think Rs 172-180 is the maximum what I have seen in this stock."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.

Source: Moneycontrol