The stock of Tata Steel did not move much and closed flat last week. The recent breakthrough of the key support level of Rs.230 has kept the bearish trend intact. Short-term trend is down. Both the daily and weekly relative strength indices feature in the bearish zone.
Further, the stock trades well below its 50- and 200-day moving averages. Medium as well as intermediate-term trends are down. It has been on a medium-term downtrend from its May high of Rs.384. The stock can extend its decline and test the significant support at Rs.200.
Traders can consider selling the stock with a stop-loss at Rs.230. A strong breakthrough of the significant support at Rs.200 can reinforce the downtrend and pull it to Rs.185 and Rs.165. Key resistances are placed at Rs.230, Rs.250 and Rs.265.
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