Tata Steel and Godrej CP Futures Market Outlook: Buy or Sell?

The Indian stock market has been experiencing significant fluctuations in recent weeks, with several stocks witnessing a decline in their values. Investors are seeking guidance on whether to hold or exit their long positions in Tata Steel futures and Godrej CP futures.

Tata Steel Futures Outlook

Tata Steel, trading at ₹183, has been on a decline for the last two weeks, falling off the resistance at ₹193. However, on Friday, the stock recovered well after making a low of ₹180.

Support Band and Rebound Potential

There is a support band between ₹180 and ₹182, on the back of which, the stock can rebound. So long as this support band holds, bulls will have a chance to regain ground. A breakout of ₹193 will make the set up more favourable for the bulls.

Tata Steel Futures Market Impact

• The August contract is trading around ₹184 and has a support band between ₹180 and ₹182.
• A breakout of ₹195 is necessary to establish a sustainable rally, which can trigger a rally to ₹210.
• A breach of the support at ₹180 can lead to a deeper fall, potentially increasing the loss.

Key Takeaways

• Hold the trade but place a stop-loss at ₹178.
• Exit the trade once the contract rises to ₹193, though at a loss.
• Go long again once the futures decisively breaks out of ₹195.

Godrej CP Futures Analysis

Godrej CP Stock Performance

The stock has dropped over 10 per cent so far this week, breaching the support ₹980 and potentially opening the door for further decline.

Godrej CP Futures Market Impact

However, from the current level, there is a chance for a temporary rise, and the scrip can appreciate to retest ₹980.

Godrej CP Futures Market Impact

• The September futures are currently trading at ₹946 and can see an upswing to ₹990.
• Consider going long, but initiate trade at ₹925 to achieve a better risk-reward ratio.
• Place stop-loss at ₹905 and tighten it to ₹945 when the contract moves up to ₹970.

FAQs

What is the outlook for Tata Steel futures?

The stock has a support band between ₹180 and ₹182, and a breakout of ₹193 will make the set up more favourable for the bulls.

Should I buy Godrej CP September futures at the current market price?

Consider going long, but initiate trade at ₹925 to achieve a better risk-reward ratio.

What is the risk associated with Godrej CP futures?

This is a counter-trend trade and carries higher risk.

Conclusion

Investors are advised to hold their long positions in Tata Steel futures but place a stop-loss at ₹178. For Godrej CP futures, consider going long but initiate trade at ₹925 to achieve a better risk-reward ratio. However, this is a counter-trend trade and carries higher risk. It is essential to monitor the market closely and adjust the stop-loss accordingly.