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The sharp decline in Tata Steel on Monday was arrested at Rs 750, in line with our expectation.

The stock can move in a range between Rs 780 and Rs 925 over the next few sessions. As explained earlier, the medium-term outlook will turn negative only on a close below Rs 780. The 50 and 200 day moving averages present at Rs 800 and Rs 750 respectively will act as a buttress to any short-term correction.

However, since the stock is reversing from the short-term resistance at Rs 860, it can decline over the ensuing sessions to Rs 801 and Rs 750. Short-term traders can initiate fresh short positions if Tata Steel fails to move beyond Rs 880 in the early part of next week.

— Lokeshwarri S. K.

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