TOOFANY TATA: An Intraday Strategy on Tata Steel Ltd

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Discussion Topic: Intraday Strategy on Tata Steel


In this article, we will discuss an intraday strategy on Tata Steel Ltd. This is very easy to use strategy. Because of its usefulness, I have given it a name “TOOFANY TATA”. Hope you will like this Tata Steel Intraday Strategy.

Before I continue, let me remind you that investing in the stock market is a very risky business. Please read our disclaimer before investing.

What is TOOFANY TATA - Intraday Strategy?


TOOFANY TATA is a profitable intraday strategy which I personally use in real life trading. Since last 2 months, this strategy is giving a good profit at the month end. This is purely a price range breakout strategy and nothing else.

It is very easy to implement and you only have to look at the chart for 1 to 2 minutes. Hence, it is perfect for working professionals who do not have much time to constantly monitor the market.

What Scrip/Share is this?


  • Scrip Name: TATA STEEL LTD
  • NSE ID: TATASTEEL / Group: NIFTY 50 – Large Cap
  • BSE ID: 500470 / Group: S&P BSE SENSEX
  • Trading Segment: Cash Market & Futures Market.

What is an Inside Bar Pattern?


As this strategy is based on the concept of the inside bar pattern, let me first give some input about it.

Tata Steel Inside Bar Pattern

Refer to the above Image, an inside candle is such a candle whose high & low is completed within the range of its previous candle. Means the High of that candle would be less than the high of the immediate previous candle and the low of the candle will be higher than the low of the immediate previous candle.

How to Trade with TATA STEEL intraday strategy?


As everything in this world has some set of rules, it also has. You just have to follow the rules with discipline. Also, make sure you do follow money management basics and adhere to the position sizing technique.

Time Frame: 30 Minute Candlestick or Bar Chart.

  • Watch the 2nd 30 Minute Candle (Which Close at 10:15 AM) – If the candle is an inside bar of 1st candle and range of this candle is below Rs.5.50, then place BUY order above 0.15 rupee of High and place SELL order below 0.15 rupee of the LOW.
    Important: Trade must be executed in 3rd candle only. Else, we cancel the setup and look for the 3rd candle.
  • If the range of the 3rd candle (Which Close at 10:45 AM) is Rs.5 or below, then place BUY order above 0.15 rupee of High and place SELL order below 0.15 rupee of the LOW. If the range is above Rs.5 then “No Trade For The Day”.
  • Target will be:
    • 1st Target: Signal Candle Range
    • 2nd Target: Signal Candle Range * 1.5
  • For BUY, stop-loss will be Candle LOW - 0.15 rupee. For SELL, stop-loss will be Candle HIGH + 0.15 rupee.
  • At 1st Target Book 80% shares and trail SL to HIGH/LOW of the signal candle. Then wait for the 2nd target.
  • If SL Hits before 1st target - Take Reverse trade with same quantity. Here, Target-1 will be Signal Candle range and Target-2 will be Signal Candle Range * 2.
  • If you are using bracket order (BO) and don’t have time to check continuously - Place two orders (buy & Sell) with 1st Target & Stop-loss accordingly.

How to Follow This Strategy in Real Life?


I will give 2 examples on how to trade in this Toofany Tata Steel intraday strategy.

Let’s take the example of 28th Feb’19

Watch the 2nd, which is an inside bar candle of its previous candle. Hence we take it as a signal candle. The HIGH of this candle was 506.45 and LOW 503.15 hence the range was 3.3. As this less than 5.5 rupee we take this as a signal candle.

Tata Steel Intraday Strategy

So, we place a BUY order above 506.45+0.15 = 406.60 and a SELL order at 403.15-0.15 = 403.00.

On next candle buy got triggered. Hence, Our Targets will be as follows:

Target-1: Buy value + Signal Candle Range i.e.: 506.60+3.3 = 509.90 rupee.

Target-2: Buy value + (Signal Candle Range * 1.5) = 506.60 + (3.3*1.5) = 511.55 approx

In Buy side price went up to 511.00, hence, it has achieved Target-1 and Target-2 missed by 0.55 paisa.

Remember, you have to book 80% at 1st target and the remaining 20% have to be trailed for the 2nd target.

Let’s see another example:

Let’s take the chart of 27th Feb’19.

The 2nd candle was not an inside bar, hence, ignored.

We will now look into the 3rd candle. The 3rd candle HIGH was 510.45 and LOW 508.00 hence the range was 2.45. As this is less than Rs.5.0 we considered it a signal candle.

Tata Steel Intraday Trading Strategy

So, we place a BUY order above 510.45+0.15 = 410.60 and a SELL order at 508.00-0.15 = 507.85.

The Sell order got triggered. Hence, our targets will be as follows:

Target-1: Sell value - Signal Candle Range i.e.: 507.85-2.45 = 505.40 rupee.

Target-2: Sell value - (Signal Candle Range * 1.5) = 507.85 + (2.45*1.5) = 504.20 approx

In Sell side it went down till 497.95. Hence, it has achieved both Target-1 & Target-2.

Remember, you have to book 80% at 1st target and the remaining 20% have to be trailed for the 2nd target.

Please do some backtest before working with this strategy. Also, you may do paper trade or trade in small quantity to gain confidence in this strategy. Don’t put a big amount in trading unless you are 100% confident.

We hope that you have enjoyed the above article explaining the intraday strategy on Tata Steel Ltd. Be with us to explore forex trading, stocks trading, and other money-making opportunities.

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I'm an MBA Professional and just want to share my knowledge & experience about online earning opportunities. I have 8+ Yrs of experience in Forex/Stock Trading & 10+ Yrs in online home-based earning.
I wish you all the best !!! Happy Earning !!!!

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