Tata Steel was volatile last week. It tumbled 5 per cent in the first trading day of the week, but managed to recover all the losses thereafter. The psychological support at Rs.300 has held strongly. Last week’s candlestick pattern reflects indecisiveness. An initial dip to Rs.310 or Rs.305 is possible this week.
However, the overall view remains bullish and such dips will be a good opportunity for short-term traders to take long positions. Strong support is between Rs.300 and Rs.295, which can limit the downside for the stock. A rise to Rs.340 and Rs.350 looks likely in the coming weeks.
Short-term traders can wait for dips and go long at Rs.310. Stop-loss can be kept at Rs.290 for the target of Rs.340. Accumulate more longs if the stock extends its fall to Rs.300. Medium-term investors can continue to hold their long positions for the target of Rs.340. Revise the stop-loss higher to Rs.290 from Rs.280.
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