Investors with a short-term perspective can buy TVS Motor Company at current levels. The stock found support at Rs 29 in early August 2013 and moved sideways for a month. This level has now turned into a significant support level. The stock is in a medium-term uptrend since then. Following a parabolic rally, the stock encountered resistance at Rs 52 in late October and began to correct. An important support at Rs 47 arrested this correction and provided cushion. On November 14, the stock jumped 5.5 per cent accompanied by above average volume, reinforcing the medium-term uptrend. The stock is trading well above its 50- and 200-day moving averages. The indicators in the daily chart have re-entered the bullish zone from the neutral region implying bullish momentum. Indicators in the weekly chart continue to feature in the bullish zone backing the uptrend. The stock’s medium-term uptrend line is intact. Its short-term outlook is bullish. The stock can extend its uptrend and reach the price target of Rs 52 or Rs 53 in the forthcoming trading sessions. Traders can buy with a stop-loss at Rs 48.8 level.

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

(This article was published on November 17, 2013)
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