Tata Steel led the market forward last week with a 14 per cent gain. The stock moved slightly above our second medium-term target of Rs 487 to peak at Rs 496. There could be a short-term correction to Rs 448 or Rs 416 in the near term. Short-term traders can buy on such declines with a stop at Rs 410. Resistances for the week would be at Rs 481 or Rs 496.
The stock is in a strong medium term up-trend and this move can continue to take Tata Steel towards the medium-term target of Rs 552. The positive medium-term view will be marred only on a close below Rs 330.
Also see: Tata Steel plant cuts CO2 emission