"we recommend traders to go short in a range of Rs 610 to Rs 616 with a price target of Rs 555. A stop loss should be placed at Rs 634," says Aditya Agarwal, Head, Technical Research at Way2Wealth Brokers.
After forming multiple bullish divergences on the daily chart, Tata Steel has seen a decent pullback. It rose to Rs 637 levels recently which coincides with the daily 200-SMA.
In line with our expectations, the stock took a sharp turn and corrected towards Rs 602. The daily RSI (14) is struggling to cross 60 levels. Also, the daily chart resembles a false breakout from triangle pattern which is a bearish sign.
Hence, we recommend traders to go short in a range of Rs 610 to Rs 616 with a price target of Rs 555. A stop loss should be placed at Rs 634 on a daily closing basis.Disclaimer: The author Head Technical Research, Way2Wealth Brokers Pvt. Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.