We will look at the steel stocks on individual basis: Mitesh Thacker

In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, explains how to invest in the steel sector

ET Now: Would you play for a long for Tata Steel, JSW Steel or some of these steel companies tomorrow?

Mitesh Thacker: They are clearly oversold. We will take the cases individually as to when and how these stocks are getting past that important intraday levels. Vedanta, which I cover, has already done that. JSW Steel is close to doing that. It needs to get past the levels of 1030-1035 to give some kind of a minor breakout which might happen tomorrow. Tata Steel is slightly away from those levels. It still needs to get past the levels of around 232 to 234 and then you might see a reversal which means you might miss around 2-3 per cent but again catch up at bottom. It is a very difficult task but once we start getting signals that the direction of the indicators and the price breakout happens above moving averages when all these technical factors collide and the prices come out from oversold levels, then it becomes a very strong trade which will have a very favourable risk reward equation.