In my recent post I had mentioned that Rs.582 is a crucial support for Tata Steel and once it closes below this level, it may see Rs.510. Today the Stock has closed below this level at Rs.578.30, so this should be a potential shorting opportunity for next few weeks.
Why Rs.582 was a crucial support?
It is since Sep 8, 2010 that the stock had never seen a price below Rs.582. More importantly, other major stocks like L&T, Reliance, and SBI are also weakening.
Will it surely see Rs.520 in next few months?
The stock has excellent fundamentals from the long term perspective, so it may not break to the Rs.520 level; however, technically the stock seems going to Rs.520 in near term. It is a risky bet, but shorting is still worth as the charts suggest it will fall in the near future.
Why Rs.582 was a crucial support?
It is since Sep 8, 2010 that the stock had never seen a price below Rs.582. More importantly, other major stocks like L&T, Reliance, and SBI are also weakening.
Will it surely see Rs.520 in next few months?
The stock has excellent fundamentals from the long term perspective, so it may not break to the Rs.520 level; however, technically the stock seems going to Rs.520 in near term. It is a risky bet, but shorting is still worth as the charts suggest it will fall in the near future.
This post first appeared on EquiTrade - A Blog About Equity Investment And Trading, please read the originial post: here
