Thursday, 6 November 2008

Sell Tata Steel on rise: N Pillai

Neppolian Pillai of Modern Shares & Stock Brokers is of the view that one can sell Tata Steel on rise.

Pillai told CNBC-TV18, "Tata Steel is a commodity stock and the commodity cycle has turned for the worst by the time it comes back into a bullish orbit, it is another 12-18 months away we are on the cycle, so this stock is going to continuously get beaten down. So on the upside; it will be a sell on rise. For the time being on the downside about Rs 165 is the level, which I am kind of looking at for Tata Steel, where we can come in and buy."

He further added, "If Tata Motors closes at the level where it is at Rs 154, it is going below a major support level of Rs 165 and the next major support, not talking of intra day supports but major positional support is close to about Rs 65. So that’s a completely beaten down stock, it can go down further also not to touch that from a buy point of view."

Source: Moneycontrol

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.