Tata chemicals shares surge 10% today: How Kenya High Court ruling and Tata Group's comment lifted the stock

However, the positional chart structure remains negative, as the stock is gradually moving south in a lower-highs and lower-lows pattern while trading below both its short-term and long-term moving averages."Immediate support on the downside is placed around the ₹570 spot level; a decisive break below this would be a negative development that could drag the stock further down toward the ₹520– ₹500 range in the near term.

On the upside, the stock faces multiple resistance levels in the ₹670– ₹700 range," said Kumar.Aditya Thukral, founder and analyst at AT Research and Risk Managers, said Tata Chemicals has been in a downtrend with the formation of lower highs and lower lows. The stock price is trading with negative crossovers between all its major exponential moving averages, which is a negative sign."There is no signal of a trend change in the stock for now, and a rise in the stock price will be an exit opportunity for buyers.

All the rallies are corrective in nature, and the structure looks incomplete on the downside. A stiff resistance near ₹700 levels should be used as an exit opportunity, where the stock price could extend losses towards ₹500 levels in the next 3 to 4 months," said Thukral."The stock is in a downtrend, and a rise near the resistance level of ₹700 is an exit opportunity for short and medium-term investors.

The possibility of stock prices falling towards ₹500 seems highly possible," Thukral said.Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.