Former SBI Boss Joins Tata Steel As Independent Director - Stock Analysis

Tata Steel EOD Chart

The previous few trading sessions have been bearish for Tata Steel Limited as we can see from the charts. The stock has fallen below the L4 support level of 271.65 for June 2013 which is a bearish signal with 255 as the next target. 

Tata Steel EOD Chart

Wolfe wave analysis also depicts a similar picture and a drop to around 240 levels is not unexpected. EMA crossovers also do not show any sign of recovery for the stock.

Looking into derivatives data we notice that there has been heavy call writing today across various strikes which is yet another bearish trigger for the stock.

Tata Steel Jun 2013 Futures OI

A steep rise in open interest of June futures along with a decline in price is depicting new shorts being opened.

Tata Steel Jun 2013 Futures Price

Traders may short June futures and expect some drops in the next few sessions.

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