Nifty50: Break below 21,745 to accelerate fall; Trend bullish in Tata Steel

After a healthy correction of 13 per cent, Tata Steel stock has found support on its 50 days SMA and has bounced back

Nifty50

Nifty gave a downside breakout on March 19, breaching the 21,860 level. It also showed follow through weakness after the bearish Engulfing pattern shown on weekly charts last week.

A break of 21,745 on the downside could result in acceleration in the downtrend while 21,905 could offer resistance on the upside.

Buy Tata Steel | Last close: Rs 148.7 | Target: Rs 162 | Stop-loss: Rs 141

After a healthy correction of 13 per cent, the stock found has support on its 50 days SMA and has bounced back. On March 18, the stock surged more than 5 per cent with a jump in volumes. The stochastic oscillator has exited the oversold zone, which indicates probable bullish trend reversal for the stock. 

 

Disclaimer: Vinay Rajani, CMT is Senior Technical and Derivative Analyst, HDFC securities. Views are his own.