Tata Steel (₹471.9)
Tata Steel tested the key resistance at ₹480last week as expected. But the stock failed to surpass this hurdle and fell to close almost flat for the week. The price action in the coming days will need a close watch. Inability to break above ₹480 may pull the stock lower to ₹460 or ₹455 in the near term. If the stock manages to sustain above ₹455 and reverses higher, a range-bound move between ₹455 and ₹480 can be seen for some time. The short-term view will turn negative if Tata Steel decisively breaks below ₹455. Such a break may drag it to ₹435 or ₹430. On the other hand, the stock will gain fresh momentum only if it breaks decisively above ₹480. This can take it to ₹500 immediately. Further break above ₹500 will see the rally extending to ₹540 and ₹550. Medium-term investors can hold the longs with the revised stop-loss at ₹390. Investors with less risk appetite can book partial profits (around 30 per cent) at ₹450 if the stock breaks below ₹455.
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