The stock of Tata Steel has been moving sideways in the band between ₹380 and ₹420 since mid-December 2014. Only a strong plunge below ₹380 will reinforce the stock’s intermediate-term downtrend that has been in place since July 2014. This can drag the stock down to ₹360 and then to ₹340.
On the upside, the stock needs to conclusively rally above ₹420 to alter the short-term outlook into bullish and take it northwards to ₹430 and ₹440. Immediate resistance levels are at ₹400 and ₹410.
Traders with a short-term perspective can remain on the sidelines for now. While the indicators in the daily chart are showing signs of trend reversal, the stock needs to emphatically break ₹420 for confirmation of the uptrend.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.