Tuesday, 3 June 2014

IS TATA STEEL NOW HEADING TOWARD 675 -800?

WE WERE QUITE BULLISH ON TATA STEEL FROM 390 LEVELS :

WE  RECOMMENDED OUR CLIENTS ON  MAY 5 TH CLEARLY TOLD ITS AN MULTIBAGGER IN THE MAKING
 http://trendzofmarket.blogspot.in/2014/05/tata-steel-is-it-multibagger-in.html 

TO BUY TATA STEEL AT 390 FOR TGT 430 IN SHORT TERM AND ABV 430  FOR 500- 525  FOR MEDIUM TERM TODAY THE STOCK HIT ALL OUR TARGETS

LETS HAVE A LOOK NOW WHERE THE STOCK IS HEADING 
The Tata Steel stock has been on a roll this week and has reached our target of Rs.500 -525 mentioned in the previous call. Looking at the long-term charts and the recent price action, we believe that the stock could rally to the next major resistance-cum-target level of Rs.690.  Kindly direct your attention to the weekly chart featured below.




 From the above weekly chart, it is apparent that the rally this week has resulted in a breakout past the key resistance level at Rs.490-500 zone. We expect the uptrend to continue up to the next major resistance at Rs.685-710 range. While there is minor hurdle for Tata Steel at Rs.520 and Rs.550, we expect the stock to sail through these levels and hit the eventual target of Rs.690.

Those who are wanting to buy the stock may await a fall to Rs.485-495 range. We would maintain a positive view on Tata Steel as long as the stock trades above the key support at Rs.450. Those having long positions may push their stop loss to Rs.450. Those eager to buy afresh may await a fall to Rs.485-495 range and have the stop at Rs.450.
Once the price clears the resistance band at Rs.685-710, the stock could then rally to the middle line of the red pitchfork at Rs.780-800. But, let’s think of that scenario after price clears Rs.710.


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