Tata Steel has target at Rs 444, says Harchekar

Amit Harchekar of IIFL is of the view that, Tata Steel is having a target around Rs 444, as CNX metal index is indicating a very good strength and that is projecting an upside potential of 12 percent.

Harchekar told CNBC-TV18, "CNX metal index is indicating a very good strength and that is projecting an upside potential of 12 percent. So I believe one can expect a good upmove from stocks like JSW Steel and Tata Steel. Tata Steel above Rs 400 is projecting targets of Rs 444. JSW Steel after today’s breakout is projecting target of Rs 845. So clearly 10 percent upmove is quite possible in most of these largecap stocks." He further added, "Financials I believe they will be turning into an underperformer. One can expect 2-3 percent of upmove in CNX-Bank Index but above that a phase of distribution might come into picture. So again the trade would be short financials and long on metals." Disclosures: We have recommended metal stocks to our clients but no personal holdings.