Tata Steel made marginal gains of around one per cent last week. The stock is in the process of building a key base at around ₹280. But the indicators in the daily chart form a positive divergence. The weekly indicators are on the brink of recovering from the oversold levels. Therefore, traders with a short-term perspective can desist from trading in the stock for a while. A strong rally above the significant resistance level of ₹300 can provide some near-term bullish momentum and take the stock upwards to ₹320 levels. In that case, traders can initiate long position with a fixed stop-loss. Resistances after ₹320 are at ₹340 and ₹350 levels. Investors with a medium-term horizon can stay way from the stock. A conclusive fall below ₹280 can pull the stock down to ₹271 and then to ₹260 levels.

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