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The stock of Tata Steel has been decline since April. The downtrend began from about ₹1,385. It has been falling with intermittent minor corrective rallies and extending the drop, the stock invalidated the psychological support of ₹1,000 before a couple of weeks. The fall has been sharp, and the stock closed at ₹838 on Wednesday.
The price action hints at further depreciation in the coming days. From the current level of ₹838, the nearest support can be spotted at ₹750. Although there are good chances for a decline below that level, ₹750 can be set as short-term target.
Given the prevailing conditions, one can consider initiating fresh shorts at the current level of ₹838 on Thursday. Place stop-loss at ₹878. Liquidate the short positions when the price falls to ₹750.
That said, if the stock opens with a gap-down on Thursday, wait for the price to inch up to ₹838-840 levels and then go short. On the other hand, short if it opens with a gap-up; however, if it opens above ₹878, refrain from trading.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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