Tata Steel is neither gaining strength to rise past the psychological ₹500 mark decisively nor witnessing a heavy selling pressure for a sharp fall. The stock hovered around ₹500 in the past week and has closed lower, thereby leaving the immediate outlook mixed. Inability to bounce above ₹500 from the current levels may see the stock falling to ₹470 levels in the near term. A break below ₹470 looks less probable at the moment. As such, Tata Steel is expected to reverse higher again to target ₹500 from around ₹470 levels. A strong break and a decisive close above ₹500 may bring in fresh momentum for the stock. In such a scenario, the stock may rise to our long awaited target level of ₹535 or even ₹545 . Medium-term investors can hold the long positions. Retain the stop-loss at ₹410. Book partial profits (around 30 per cent of your holdings) at ₹530. The region between ₹460 and ₹450 is a crucial support for the stock. Tata Steel will come under pressure only if it breaks below ₹450. But such a sharp fall looks unlikely as the bias on the charts remains bullish.
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