The short-term outlook of Tata Power is bearish. The stock has failed to get a strong follow-through rise above ₹230. It has tumbled over 6 per cent over the last two days. Importantly, this turn-around has happened from the 21-Week Moving Average (WMA), which is currently at ₹233.5.
Immediate support is at ₹209, which is more likely to be broken. Such a break can drag the stock down to ₹190 and even lower in the coming days. Traders can go short at current levels and accumulate shorts at ₹228. Keep the stop-loss at ₹238 and trail it down to ₹215 when the stock declines to ₹211. Move the stop-loss further down to ₹205 when it touches ₹198 on the downside. Exit the short positions at ₹193.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)