TATA STEEL LTD
Open-570--High-582.35--Low-563.05—Close-574.90 on 27.11.2020
Support:568.25/561.65/553.50/538/518.60/506/455.
Resistance:579.85/610.60/636.80/647.60/671.90/683.50/713.90/739/793/846/925.50/935/957/961.45.
All Time High:--961.45 Made on 26.10.2007.
Recent High: - 793 Made on 15.1.2018.
Recent Low :--250.85 Made on 30.3.2020.
(Bold and underlined figures are most important)
Technically it is on a strong footing on daily, weekly and monthly chart as of now and already in robust up momentum which indicates that further big rise may be ahead in coming days/months if market conditions remain conducive and off course with intermittent down correction. Please note that it could correct any time soon as it has had a vertical rise from 395 to 581.95 intraday, but the bias is hugely bullish therefore it should be bought into on decline but not below 538(this figure will move up with stock price rise) and then below 503.80(this figure will move up with stock price rise), because sustained close below 538 will push it into medium term correction mode and sustained close below 503.80 can push it into long term correction mode and can potentially threaten the uptrend also. But looking at the overall technical setup now deep correction is less likely, therefore it is expected that when it corrects that will be a short correction and it may resume the up move again. Moving up it will face stiff resistance and the broad resistance points would be at 586---606---647.60---665---690---739---793---820. Similarly moving down its major key points are at 568.25---553.50---538---503.80(last figure will change with new upside movement in the price). In view of the above observation one should exit long trade if it sustain below 503.80 as of now (this figure will move up with fresh upside movement in stock price) on the closing basis.
The investment time horizon is 12-15 months and if it respects its key points on the downside then the possible upside target could be 740---800 or may be more. Please note that you can structure your trade or investment with the help of above mentioned support and resistance points.
It is strongly suggested to trail your stop losses (with the help of support levels mentioned above) in the profitable trade to avoid losses completely. PLEASE NOTE THAT IT IS PURELY A TECHNICAL CALL. DO NOT TRADE OR INVEST WITHOUT STOP LOSS.
NOTE: - It is the technical assessment of the stock as of now, the technical
interpretation changes with the price movement and time, therefore investors
are advised to look into fundamental, financial details of the company and last
but not the least management perception for the future of the company before
taking investment decision.
Disclaimer:-The view expressed here are solely of the author and he is not
at all responsible in any way for the outcome of the trade you enter based on
the above view.
Kindly note that make your cost your stop loss
in favorable trade and then trail it as the price move up/down
to gain maximum profit and avoid losses. Use support and resistance levels as
entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT
STOP LOSS.
Note: Price stated
here are of spot market.
Contact me for strategic guidance to enter and
exit trade.
Thanks
Narendra Kumar Surana
Mobile—8240951127/9831313654.
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Thank you for sharing your views.