The stock has been consolidating after an upmove and taking support around the golden ratio.
With china announcing cuts in production in H2 for steel, global supply will come down which in turn should sustain these high prices.
In that case some indian steel stocks like JSPL, SAIL and Tata Steel Long Products are trading at extremely cheap valuations while producing incredibly high cash flows (which is helping take down their debt quicker than ever anticipated)
Long above 404 with a SL below 384.
First Target 430 and then maybe back to the recent highs.
One of the downsides is high Iron ore & Coal prices so better to look for companies with higher captive capacities.
With china announcing cuts in production in H2 for steel, global supply will come down which in turn should sustain these high prices.
In that case some indian steel stocks like JSPL, SAIL and Tata Steel Long Products are trading at extremely cheap valuations while producing incredibly high cash flows (which is helping take down their debt quicker than ever anticipated)
Long above 404 with a SL below 384.
First Target 430 and then maybe back to the recent highs.
One of the downsides is high Iron ore & Coal prices so better to look for companies with higher captive capacities.
