We recommend buying Tata Steel at Rs 509 with stop loss of Rs 479 for target of Rs 570, says Shabbir Kayyumi of Narnolia Financial Advisors.
After hitting the peak of Rs 610, Tata Steel slipped lower till Rs 500. From this price, chances of developing of demand is higher and has been trading in a range bound zone of Rs 500 and Rs 520.
Currently, the stock is trading near its multi-support horizontal line and point of polarity on weekly chart is giving cues to accumulate this stock at lower levels.
Positive divergence in RSI on daily chart and declining histogram in MACD suggest upside momentum. As long as it sustains above Rs 480, possibility of moving on upside is higher and it can hit our first target of Rs 570. We recommend buying Tata Steel at Rs 509 with stop loss of Rs 479 for target of Rs 570.
The author is Head - Technical & Derivative Research at Narnolia Financial Advisors Ltd.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.