Tata steel the heavy weight over the Index has always been a crème stock for the investors. It has been favourites to many and performed decently over the past few weeks. Last week the stock plunged by 4% to close at Rs.415.
However the present trends seem to be negative for the stocks and it might reach lower levels as a part of the stocks correction. The stock is currently trading well below its 21 and 50 day moving averages. The daily as well as the weekly indicators have shown that the stock is in the bearish zone. Traders may continue to hold their short positions with a stop loss of Rs.432. The short term downside targets seem to be the levels of Rs.410, Rs.400 and Rs.390
The stock plunging down to Rs.400 would be a signal for booking profits. The resistances for this week are Rs.440, Rs.460, and Rs.475. The stock seems to have resumed its medium terms downtrend which has been in place ever since April this year. The company had reached its peak of Rs.641 in the month of April. As a medium term target if the stock breaches below the levels of Rs.400 it could even pull the stock down to the Rs.370 levels. Taking short positions might also help in collecting marginal profits for the traders.
Bell the Bull says: Looking at the stock in a corrective mood booking some profits for the traders might seem to be a lucrative option.