Many negative factors have been surrounding the Indian steel industry in the last month or two with no signs of abatement. More recently, Government of India has announced import duty on steel imports and one of the biggest players in the industry SAIL declared production cuts at the beginning of the week. Apart from news based weakness, the stock needs to battle the technical and fundamental wars too. It has a feeble support at 150, which seems it will be easily cracked. Fundamentally, how much value can it plead for when its full year diluted earnings per share are teethering at Rs.17 and only negative growth expected in the coming quarters? Add to that global recession, decline in demand and general fear amongst investors, and you get a perfect recipe for a sure shot fall to much lower than present levels. Any votes for Rs. 110?
