Tata Steel – Baby steps of the next bullrun Chart of the Day | DM Stocks

Tata Steel – Baby steps of the next bullrun

Chart of the Day

Metals are one of the most capitulated sectors this year. This is well exemplified here with Tata Steel. The MF holdings (green overlay) as a % of the Nifty500 AUMs have plummeted. Investors hit the exit button during the May-June sell-off as well as the subsequent rebound when it stalled.

Early 2021 was a huge milestone in the long-term picture when it could finally muster up enough power to take out the 2008 peak ending a 13-year bear market. In all probability the sell-off into June this year was a bull market correction.

With many global supportive catalysts re-emerging, Tata Steel and metal stocks in general could be seeing the baby steps for the next boom phase here. Important levels on the way are 120 followed by 145. Long-term target could be near 187.

Biju Samuel
Elara Alternate Research
Friday, 2-Dec-2022