Tata Steel zoomed almost 18 per cent with good volumes in the previous week, decisively breaching multiple key resistances. The stock’s daily indicators have entered the overbought levels signalling a near-term correction. In such a scenario, the stock can decline to its immediate support at ₹540 and then to ₹520. On the upside,it can encounter significant resistance at ₹580 and ₹600 (a significant long-term resistance level). Traders with short-term perspective should remain cautious in the ensuing week and can take profits off the table if the stock fails advances above ₹580 levels. Only a strong plunge below ₹480 will mar the stock’s short-term uptrend and drag it down to ₹450. Investors with medium-term perspective can stay invested with a revised stop-loss at ₹430.
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