Investors with a short-term perspective can consider selling the stock of TVS Motor Company at current levels. Since taking support at ₹143 in late July, the stock has been on a medium-term uptrend. But after marking a 52-week high at ₹242 on September 4, the stock has been on a near-term downtrend. On Tuesday, the stock fell 4 per cent, breaching its immediate support at ₹216 levels. The relative strength index on the daily chart has displayed negative divergence and is on the brink of entering the neutral region. The weekly MACD is hovering in the overbought territory indicating the possibility of a near-term correction. Further, the weekly RSI is displaying a prolonged negative divergence implying trend reversal. Taking a contrarian stance on the stock, our short-term outlook is bearish. It can resume its near-term downmove and reach the price target of ₹204.5 and then ₹200 in the forthcoming trading sessions. Sell the stock with a stop-loss at ₹218.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.