Technical Analysis

Tata Steel is likely to reverse higher

Gurumurthy K | Updated on March 09, 2018 Published on April 23, 2017

24_Tatasteel chart

Tata Steel (₹450.9)

Tata Steel fell below ₹460 to test ₹450 levels in line with our expectation last week. The key support at ₹440 is holding well as of now and the stock bounce higher after making a low of ₹442 last week. The region between ₹440 and ₹435 is a crucial support, which is likely to limit the downside. Though the stock may trade around this support in a sideways range between ₹435 and ₹460 for some time, an immediate break below ₹435 is unlikely as a cluster of trend-line supports are poised at this level. As such, fresh buyers are expected to come into the market at ₹435 levels. A rise to ₹480 or ₹485 is possible. A strong break above ₹485 is needed for the downside pressure to ease. But, if Tata Steel declines below ₹435, it can fall to ₹427 initially. Further break below ₹427 will increase the likelihood of the stock extending its fall to ₹400 thereafter. Investors can hold the long positions with a stop-loss at ₹415. Revise the stop-loss higher to ₹460 if the stock rallies to ₹520.



Published on April 23, 2017
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