Technical Desk Call: 28March2016
Future Strategy:
Sell TataSteel Fut(Apr) 311---310 Stoploss 322 CB Target 281---271 Time-frame 10---14Days
Option Strategy :
Buy Tatasteel 280 Put (Apr) 3--4 Stoploss Rs. 1 Target 10--12
Justification: The stock has seen a sharp rally in current march series from its latest double bottom range 210-220 till today's high of 218 which was almost double top formation on daily chart. At current juncture, the stock bottomed out from 210 level to sharply bounced till 318 which on retracement chart if we see than today it has faced a stiff resistance level around 320 level on closing basis and had sharply corrected as expected which suggest some profit booking to emerged till level of 280---270 where again a stock can consolidate for some time.
At the same time, we are also observing a strong resistance and overbought indication on RSI and a negative divergence on MACD on daily chart which suggest some reversal on card. So considering current chart structure, we believe that this recent up move was mere a pull back of sharp fall in the counter of the past and thus we are again expecting some selling pressure to emerged again in this counter. Hence traders are advised to take short position as shown above.
