The stock of Tata Steel witnessed another volatile week but closed flat. It continues to be in a short-term uptrend that commenced from the late September low of Rs.200.
Traders with a short-term horizon can use the ongoing corrective fall or sideways movement to buy the stock while maintaining a fixed stop-loss at Rs.235. Resumption of the stock’s up move can take it higher to Rs.265 and then to Rs.280 in the coming weeks.
However, weakeness in the market can trigger a sell-off in the stock. So, investors with high risk appetite can buy on declines. On the downside, if the stock falls below the key immediate base level of Rs.230, it will alter the uptrend and pull it down to Rs.215.
The medium-term trend has been down from the May high of Rs.384. A breakthrough of the key resistance band between Rs.290 and Rs.300 is needed to reverse this downtrend.
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