Is TATASTEEL Trading At A Fair Valuation?

6 Oca

TATASTEEL has been falling since 185 rupees and has reached about 50% retracement level today from the last swing. Though this stock is in surveillance as the PE is above 50, But also considering the PB of less than 2 and other similar factors, It may not be that bad after-all.



Technically speaking, The stock is trading at an RSI of about 30 on daily, and there is a bullish divergence on hourly chart.



There is a doubt in my head due to the new Virus news sentiments. If it goes to 120, It would be trading around 61.8% retracement which would be an ideal buy for me. Currently I am tracking this stock and considering an early buy at 132-133 range.

~ Trading Idea by Dr. Sagar Bansal via jyotibansalanalysis

6 Oca

Not

Alert - The current RSI on hourly chart is near to the previous low. If it goes down further, it may result in a failed divergence. Something to be cautious of. But its not a bad trade considering the stop loss would also be negligible.