Sunday, April 19, 2009

Technical Analysis - Tata Steel

Tata Steel


Tata Steel rallied strongly in the first two sessions to record a peak at Rs 297 and moved sideways thereafter. Short-term supports for the stock are Rs 250 and Rs 233. Short-term traders can buy in declines above the first support. The stock can then take a shy at the 200-day moving average at Rs 335 and beyond that at Rs 360. However a close below Rs 250 would be a psychological victory from the bears and usher in a medium term correction to Rs 240 and Rs 207.

The medium-term trend is currently up though the stock is appearing stretched on the daily charts. The magnitude of the correction should be closely watched to understand the medium term direction in the stock.

— Lokeshwarri S.K.
businessline 19-04-09

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