TATA STEEL WEEKLY

TATA STEEL
The weekly charts show formation of a BEARISH HARAMI pattern and especially since the volume has been low in the last week the pattern has to be taken more seriously. More down days in the coming week will confirm the bearish pattern and the stock can correct from the present levels. Next resistance for the stock lies at 541 and then at 570 level. Talking about the support the low of the previous week at 466 can offer support if the stock does correct in the coming days, however more importance should be given to the support at 444 levels as the 14week MA, the Bollinger band average and the 38.2% level of the entire fall form May 2008 to Feb 2009 lies in the 440-444 zone which makes a confluence target as well as a strong support. The stock also consolidated in the region of 440-445 before resuming its up move. If the stock does correct to 440 buying could come in at those levels, ideal strategy would be to buy the stock in the region of 440-445 for a resumption of the up move towards 470-500
OI data
1> 520 call options have good OI thus suggesting heavy resistance in the 515-520 region
2> On the put side only 500 puts are showing good OI suggesting some support at 500 but below 500 there is lack of put writing which suggests the absence of support through put writing
Volume data
1> In the past one week the volume on down days was 485 CR while on the UP day the volume was 436 CR
2> The % delivery positions on Friday was 25% against a 10 average of 28.5%

Considering the above data the best shorting region for the stock is at 520-525 with the SL being either 530- 542 the target being 470
And the best buying region is at either 460 or preferable at 441 for a target of 500