Tata Chem was ruling at Rs 148 on June 17. Thereafter, in just 5 sessions, it moved up to Rs 180 by June 24. The trend sustained and the scrip posted a price of Rs 201 on July 7. By July 8, it had reacted to Rs 182. On Wednesday, it had reacted from Rs 194 to Rs 185.50. In an earlier write up in this column, I had pointed out the long term bullishness of the scrip. That position stays. Yet the scrip is ripe for reaction and would invite profit taking from short term traders. It could find support at the level of Rs 178. That is a clear Rs 8 difference for volume traders.

If you are a long term trader, you must hold. For in the wings is the news that government is considering some favourable policy changes that would impact Tata Chem.

At the moment, one should know the possibilities between short and long term. And depending upon your time targets, you can hold or book profit.

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