Buy Tata Steel for target of Rs 546: IIFL

MUMBAI: IIFL has advised traders to buy Tata Steel for target of Rs 546.

“Tata Steel has bounced back strongly after testing a low of Rs 493 last week. The falling resistance line also corresponds to short term breakout levels at Rs 520, above which stock is likely to test its 200-DMA (Rs 565). Positive crossover in RSI also support buying argument after breakout is confirmed on price chart.

The other momentum oscillators also suggest strength in the counter. Based on the above observations, we recommend traders to buy the stock between Rs 525-529 with stoploss of Rs 519 for target of Rs 546. Traders are advised to build fresh long positions on a successful close above its 100-DMA, i.e. Rs 534,” the report said.


Note: Trading idea valid for time-period of 1-3 sessions.