The short-term outlook for the Tata Chemicals stock is bearish. The stock has tumbled 7.6 per cent so far this week. Now, it is well below the 200-Day Moving Average (DMA), which is currently at ₹930. Another trend line resistance is also poised around ₹930. This makes the ₹930 level a very strong resistance.
Immediate resistance is around ₹892. Any intermediate rallies breaking above ₹892 towards ₹930 is likely to see fresh sellers coming in and cap the upside. Near-term support is at ₹848. A break below it can drag the stock down to ₹820 in the next two-three weeks. A further break below ₹820 will see the fall extending towards ₹780 in the next one or two months. Traders can go short now and at ₹886. Stop-loss can be kept at ₹906. Trail the stop-loss down to ₹868 as soon as the stock falls to ₹845. Move the stop-loss further down to ₹842 as soon as the stock touches ₹833. Book profits at ₹825.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)