Tata Steel, SAIL: Should you Buy or Sell them? Here's what charts suggest

Charts of steel stocks signal further downside, indicating a fall up to 20 per cent in select shares; cement counters indicate a wait-and-watch approach

Shares of steel manufacturing companies were bleeding in trades on Monday, with select stocks hitting the lower circuits

after the government levied export duty on 11 iron and steel intermediates and key steel products. The government levied export duty of 15 per cent on almost all the major steel products (including stainless steel).

Among individual stocks, Jindal Steel & Power tanked 15 per cent; Tata Steel, Steel Authority of India (SAIL) and JSW Steel tumbled over 10 per cent each. READ MORE

Going ahead, analysts believe that just like the steel sector, the cement industry could see some intervention by the govenrment given the high prices.  

Meanwhile, here’s an outlook on select Steel and Cement stocks for days ahead:- 

Jindal Steel & Power (JINDALSTEL)

Likely target: Rs 340

Downside potential:  15%

With a massive decline of over 15 per cent in Monday's intra-day trade so far, the shares of Jindal Steel & Power have violated the 200-day moving average (DMA) and seem to be heading towards its 52-weeks low placed at Rs 340 level, touched in November last year.  This can be negated only if the stock manages to fill the gap range of Rs 469 to Rs 447 levels, shows the daily chart. The immediate resistance for the stock exists at Rs 430-Rs 435 levels. CLICK HERE FOR THE CHART

Tata Steel Ltd (TATASTEEL)

Likely target: Rs 900

Downside potential:  13%

Tata Steel stock today recorded a new 52-week low and points towards further downside. This bearish sentiment appeared as the stock breached the most significant horizontal support of Rs 1,050 level, shows the weekly setup. The following support is positioned at Rs 900 mark, which is 13 per cent away from the current price. The Moving Average Convergence Divergence (MACD) is breaching the zero line downward, another indication of weak momentum. CLICK HERE FOR THE CHART

Steel Authority of India (SAIL)

Likely target: Rs 60

Downside potential:  20%

The stock has tumbled 45 per cent from the 52-week high of Rs 134, registered in May 2021. The counter has been on the downward journey since then, losing strength and majorly affecting the positive sentiment. The next support for the stock comes at Rs 60 and as long as the stock trades under the Rs 80 mark, the trend would see downward bias, according to the daily chart. CLICK HERE FOR THE CHART

UltraTech Cement Ltd (ULTRACEMCO)

Outlook: Simultaneous hurdles on upside

Shares of UltraTech Cement seem to be stable above the support of Rs 6,000-mark. However, the stock needs to conquer resistance at Rs 6,400 and Rs 6,600 levels to embark a fresh bullish rally. As of now, the stock is sluggish with no major signal, on the daily chart. CLICK HERE FOR THE CHART

The Ramco Cements Ltd (RAMCOCEM)

Outlook: Needs to hold 52-week low

Ramco Cement is trading near the 52-week low of Rs 671.05 and any breach of the same could lead to a fresh sell-off. On the higher side, the hurdle for the stock exists at Rs 730 level and then further up at Rs 775. The overall structure exhibits weak momentum and until there is an aggressive build-up of volumes, things may not get better for this stock.  CLICK HERE FOR THE CHART