Tata Steel extended its rally to close in the green for the fourth consecutive week. The stock has closed about 4 per cent higher. But the pull back move from the high of ₹245.6 towards the end of the week needs to be watched.
This down move has happened from an important medium-term trend line resistance. The key level to watch this week will be ₹244. A strong break above ₹244 will ease the downside pressure and take the stock to ₹250.
Only a strong break above ₹250 will confirm a trend reversal. But, inability to break above ₹244 will keep the medium-term downtrend intact. Support is at ₹236. A strong break below it can take the stock lower to the 21-day moving average support at ₹229.
This will increase the danger of the stock falling to ₹210.
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