Trade Spotlight: What should investors do with Tata Steel, JSW Steel & Blue Dart?

Tata Steel rose over 4 percent, JSW Steel and Blue Dart rallied more than 5 percent each on March 30 to hit a fresh 52-week high. Read expert recommendations on how to trade these stocks today.

March 31, 2021 / 07:26 AM IST
 
 
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The bulls remained in control of D-Street for the second consecutive day on March 30, pushing both the Sensex and the Nifty above the crucial resistance levels. The S&P BSE Sensex rallied 1128 points to 50,136, while the Nifty50 closed with gains of 337 points to 14,845.

Sectorally, buying was seen in stocks like IT, metal, healthcare, and FMCG stocks that rose 2 percent each.

Tata Steel gained over 4 percent with strong volumes, while JSW Steel and Blue Dart rallied over 5 percent each to hit a fresh 52-week high.

Here is what experts say to trading these stocks today.

Expert: Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory, Chartviewindia.in

Close

Tata Steel

This counter seems to be coming out of a multi-year underpeformance with a decisive breakout, from its multi-year trading range of 747– 188 levels between the years 2010 and 2020.

However, on the lower end of the trading range, it registered slightly higher bottoms each time it bottomed out, which depicted an ascending triangle on long-term charts.

Last week this counter decisively registered a breakout on massive volumes from the said trading range and looks to be heading towards its lifetime highs present around 901 registered in 2008.

Once it manages to conquer 901, then a bigger target placed towards 1,200, based on the triangular breakout, can’t be ruled out.

For long-term investors, any correction in the zone of 750–700 can be a great opportunity to accumulate for a bigger target of 1,200, whereas positional traders with a three-months kind of time horizon should hold for an initial target of 870–901 by placing a stop below 770 on a closing basis.

Blue Dart

The last two days' price action on relatively higher volumes is hinting that bottom is in place at the recent low of 4,825 levels. However, it is fast approaching its near-term resistance of 5,740.

If it registers a sustainable close above 5,740, then a bigger target towards 6,638 can be expected.

For the time, short-term traders can consider booking profits around 5,740, whereas investors can hold for the bigger target of 6,600 by placing a stop below 5,239 on a closing basis.

JSW Steel

Metals seem to be in a bull market of their own after a long time and the relative strength of this counter is far better than its peers, as this counter doesn’t hesitate from hitting new life highs consistently.

In the last session, this counter seems to have resumed its up move with life highs again after a couple of listless sessions. Moreover, in the last 30-weeks, it seems to be moving in an ascending channel whose upper boundary is placed around 520 levels.

Hence, one can continue to hold and even consider fresh buying with a stop below 450 levels on a closing basis and look for a bigger target of 497 levels.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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