Tata Steel too began the week on a nervous note, declining to Rs 192. But the stock rallied thereafter to move higher towards the resistance at Rs 230.
If the stock is unable to penetrate this level, it can reverse lower and head towards Rs 200 again. This sideways move will however be construed as a consolidation that can be followed by a break-out towards our medium term target at Rs 250. A close below Rs 190 is needed to mitigate the positive short-term view.
The medium-term trend in the stock however continues to be sideways in the range between Rs 150 and Rs 250.
As explained last week, the stock needs to record a strong break-out above Rs 250 to pave the way for a rally to Rs 345 or Rs 360.