Investors with a high risk appetite can buy the stock of Tara Jewels at current levels. It is apparent from the stock’s chart that following a short-term downtrend from the June peak of ₹130, it took support at ₹85 in late August. For more than a year, the level of ₹85 has been acting as a significant support level, arresting the stock from further decline. Subsequently, the stock changed direction triggered by positive divergence in the daily moving average convergence divergence indicator.
On Monday, it conclusively breached its 200-day moving average and a key resistance at ₹100 by gaining 10 per cent accompanied by good volume. It has entered the bullish zone now and the weekly RSI is also on the brink of entering the bullish zone. The short-term outlook for the stock is bullish. It can extend its upmove and reach the price target of ₹113 and ₹115 in the coming trading sessions. Buy the stock with a stop-loss at ₹106.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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