Traders with a short-term horizon in Tata Steel can short positions with a stop-loss at Rs.310

Last week, the stock of Tata Steel continued its down move by tumbling 5.3 per cent. The stock now hovers just above a key support level at Rs.300. Traders with a short-term perspective can book profits in their short positions and wait for further direction as the stock is testing a key support at Rs.300. A conclusive break of this support will accelerate the stock’s downtrend and take it to Rs.288 and then to Rs.270 in the short to medium term. In such a scenario, traders with a short-term horizon can initiate fresh short positions with a stop-loss at Rs.310

On the other hand, a strong rally above the immediate resistance levels of Rs.330 can push the stock’s corrective rally further higher to Rs.340 and Rs.350. An emphatic breach of Rs.350 is needed to alter the short-term downtrend.