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Tata Steel reversed from an intra-week peak at Rs 750 and declined to Rs 626 by Friday. Since the long-term trend-line is positioned at Rs 600 and the 38.2 per cent retracement of the bull phase from 2001 also occurs here, this is a key long-term support for the stock.

As indicated before, we expect a sideways move between Rs 600 and 900 for a few months. Such a move can be followed by resumption of the up-trend that takes the stock beyond Rs 1,000.

However, a conclusive break below Rs 600 would imply that the stock is headed towards the next long-term support at Rs 500. Short-term traders should initiate fresh shorts only on a decline below Rs 600. Resistances for the week would be at Rs 680 and then Rs 715.

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