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Investors with a short-term perspective can buy the stock of TVS Motor Company at current levels. Taking support from the 21-day moving average, the stock gained 3.8 per cent with an above average volume on Tuesday. With this rally, the stock appears to have resumed its short-term uptrend that has been in place from mid-August.
The stock took support in the band between ₹510 and ₹520 in early August and changed direction triggered by positive divergence in the daily indicators. Last week, the stock encountered a key resistance at ₹600 and began to test this level. Following a strong rally on Tuesday, the stock once again has started testing this resistance with an upward bias.
The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI features in the neutral region. Both the daily and weekly price rate of change indicators hover in the positive territory implying buying interest.
The short-term outlook is bullish for the stock. It has potential to surpass the current resistance and reach the price targets of ₹620 and ₹632 in the short term. Traders can buy with a stop-loss at ₹582.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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