Tata Steel one of the biggest gainers of Sensex rally: Deepak Mohoni

Deepak Mohoni, Director, trendwatchindia.com, in a chat with ET Now talks about Ttat Steel.

Since August, Tata Steel, seems to be on a northward climb. How much more headroom do you see?

Northeast actually, but headroom is good because DLF and Tata Steel are possibly the two biggest gainers of this rally in the Sensex with rally having started end of August-early September. So these are the momentum stocks and generally speaking whatever stocks has established leadership, it remains that way till the end of the rally.
They do not set down and let the others catch up. So DLF and Tata Steel will always provide good trading opportunities while this rally lasts.

Talking about the 52-week chart of Tata Steel, it is pretty close to let say a resistance of around 695. It looks like if it can break that or 690, we are pretty much in an uncharted waters again then. What is your view?

Yes, that takes it straightaway to a 2-3 year high and not very far below its all time high which is about 950. I think a fair number of stocks have now got passed their peaks of 2006, 2007, 2008 - whenever they peaked - and with the bull market continuing, chances are a lot of stocks which have not yet crossed that will get close to it.

So it's very likely that we could see - within 2 or 3 months - Tata Steel at a new high. I mean the 950 high provided the bull market persists and we cannot really say when the bull market will end until there is a decline. It's only the declines that can be evaluated. So at the moment stick with it.