Tata Steel tumbled 6 per cent with good volume last week. It now tests a key support at Rs.340.
A strong fall can intensify the bearish momentum and drag the stock down to Rs.320 and then to Rs.310 in the short term.
Traders with a short-term view can initiate short positions with a stop-loss at Rs.351. Both the medium- and intermediate-term trend continue to be down for the stock.
The indicators in the daily chart are trending downwards and are on the brink of entering the bearish zone.
On the other hand, the stock has to decisively breach its immediate key resistances at Rs.360 and Rs.380.
An emphatic rally beyond the significant resistance of Rs.380 is needed to alter the medium term downtrend and take the stock higher to Rs.400 and Rs.420 in the short to medium term.
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