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Tata Steel (₹482.6)
Tata Steel tumbled 3 per cent last Monday and was stuck in a narrow range between ₹476 and ₹486 for the rest of the week. The near-term view is negative. A dip to ₹470 or ₹465 cannot be ruled out. A break below ₹465 is less probable. Also, the downside could be limited to ₹440 and ₹435 even if a break below ₹465 is seen. A reversal from ₹465 can take the stock higher to ₹500 once again. Key resistance is in the ₹505-₹510 zone. Inability to break above ₹510 may keep the stock range-bound between ₹465 and ₹510 for some more time. But a decisive close above ₹510 may bring fresh buyers into the market. Such a break can take Tata Steel to our long awaited target level of ₹535 or even ₹545. Medium-term investors can hold the long positions with a stop-loss at ₹410. Partial profits of around 30 per cent of your holdings can be booked at ₹530. The region between ₹535 and ₹545 is a crucial long-term resistance. The price action after testing this resistance zone will be key as that would determine the next trend for the stock.
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