Technical Analyst, E Mathew is of the view that Tata Steel may slip to Rs 475-480.
Mathew told CNBC-TV18, "I had given a sell call on Tata Steel about a couple of weeks back. I had looked for an initial target of Rs 520 but today if the stock decisively breaks Rs 520, I think in a panic sell off it could well go to around Rs 475-480 zone."
He further added, "On the other hand in Sterlite thanks to the merger news and thanks to Madras Aluminium Company (Malco) being the bigger beneficiary, I think the huge sell off in Sterlite has already taken place and I feel we are close to support zone around about Rs 450-470 zone."
"Incidentally if you are comparing the two charts Tata Steel and Sterlite, I feel that though Tata Steel has been hammered down so much, I feel Tata Steel has still got the potential to go down to Rs 470-480. So if one is short in both, I would say at lower levels cover Sterlite but hang on to the short position in Tata Steel."
Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above sector.
