Tata Steel managed to recoup all its intra-week losses and closed flat for the week. The immediate outlook for the stock is positive. A rise to test the next resistance at Rs.249 looks likely this week. Short-term traders with high risk appetite can go long. Stop-loss can be kept at Rs.235 for the target of Rs.248.
If the stock manages to surpass the hurdle at Rs.249, then the rally can extend to Rs.257 and Rs.258. Such a rally will also signal a reversal of the long-term downtrend that has been in place since July 2014. But a reversal from Rs.249 can drag it lower to Rs.240 and Rs.235.
Key supports are at Rs.234 and Rs.230. The stock will come under pressure if it records a strong close below Rs.230. Such a break can take Tata Steel lower to Rs.226. Further fall below Rs.226 will increase the downside momentum and drag it lower to Rs.220 and Rs.215.
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