Tata Global Beverages stock jumped 3.8 per cent accompanied by extraordinary volume breaking through its key resistance zone between Rs 147 and Rs 150 on Thursday. From the charts of the stock it is apparent that since taking support at around Rs 135 in early and late August, it has been on a short-term uptrend.

The stock appears to have resumed its medium-term uptrend that has been in place since March trough at t Rs 122. Moreover, the stock’s recent gain has decisively breached its moving average compression (21-, 50- and 200-day moving average) at around Rs 146. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is on the brink of entering the bullish zone from the neutral region.

The daily moving average convergence divergence indicator has signalled a buy and is featuring in the positive area implying upward momentum. Both daily and weekly price rate of change indicators are hovering in the positive territory implying buying interest.

The stock’s current uptrend can extend its rally and reach this price target of Rs 161.5 or Rs 165 in the ensuing trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 152 levels.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

(This article was published on October 3, 2013)
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