Tatasteel has been an out performer during the 2017 market rallies and realistically beat the expectations in terms of a bull move. But in today’s session as the markets gap up and then drags down after 2pm , metals , psu banks and pharma were the leaders in dragging the sensex.
So on behalf of technical research I have select Tata steel for creating a short sell position as the markets are just looking a bit slippery.
Here is the list of technical formations which give proof for the selling opportunity:
1.In the equity markets the stocks deliverable quantity is becoming lesser for the past one or two weeks.
2.Most of the traders in futures positions are looking to liquidate their positions or booking profits. Over all traders are selling their previous positions. And if we analyse the Feb contract we have notice the short build up of new positions as well.
3.Daily candle stick analysis reflects bearish one black crow pattern.
4.In terms of price pattern bump and run reversal also forming on daily charts.And also AB=CD harmonic shape bearish in nature.
5.Lagging and Leading Indicators study on different time frames also confirming the sell signal.
Here is the snapshot:
