Tata Steel (CMP:370) retraces quite a lot from its recent high of around 421 (05/01/2015) after its below estimate QTR result. Raw material shortage and cheap export of Steel by China & Russia may be some of the major factors behind its dismal result.
It took support of 343 zone few days ago on the back of its disinvestment plan in Mozambique asset (coal mines) and plans to acquire major stake in some of its NORDIC zones (Europe) service centres (Strip Products).
Technically, it has to sustain above 375-380 zone for immediate(2 weeks) target of 401 and 425. Only a consecutive close above 436 zone will will pave the way for 471 and 491 in the short to medium term.
On the downside, immediate support will be around 367 and below that comes 360 & 343.
It has suffered a lot because for the first time in 100 years of its existence, all its mines are closed for raw materials. It has to import iron ore which squeezed its EBITDA from around 40% to 25%. Tata Steel is now focusing on Kalinga Nagar Plant to start its operation. Also, there may be some policy change in the forthcoming budget for steel industry (specially for iron ore related).
Tata Steel is also planning to divest some of its loss making EU assets to streamline its balance sheet.
In short, worst may be behind Tata Steel.
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