The stock of Tata Steel has been moving sideways in the band between ₹380 and ₹420 since mid-December 2014. Only a strong plunge below ₹380 will reinforce the stock’s intermediate-term downtrend that has been in place since July 2014. This can drag the stock down to ₹360 and then to ₹340.
On the upside, the stock needs to conclusively rally above ₹420 to alter the short-term outlook into bullish and take it northwards to ₹430 and ₹440. Immediate resistance levels are at ₹400 and ₹410.
Traders with a short-term perspective can remain on the sidelines for now. While the indicators in the daily chart are showing signs of trend reversal, the stock needs to emphatically break ₹420 for confirmation of the uptrend.