Stocks

Tata Metaliks (₹563): Sell

Akhil NallamuthuBL Research Bureau | Updated on October 30, 2019 Published on October 30, 2019

Tata Metaliks, which has been in a long-term downtrend, but posted a recovery from second half of August this year as it rose from ₹480 to ₹600. The stock could not gain beyond that level due to presence of a strong resistance at that level and was consolidating by oscillating between ₹565 and ₹600. Also, the 50-day moving average lies at ₹595, acting as a resistance capping the upside.

The company, which announced its quarterly result on Tuesday, reported a 51 per cent reduction in profit. This could trigger fresh round of selling. Notably, the stock price has already broken below the lower boundary of the range at ₹565. A decline from current levels will confirm a lower high in weekly time frame, a bearish signal and so the stock will most likely depreciate in upcoming sessions.

Hence, on a medium-term perspective, one can sell the stock on rallies with a stop-loss at ₹585 and look for potential targets at ₹520 and ₹500.

Supports: ₹520 and ₹500

Resistances: ₹580 and ₹600

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Published on October 30, 2019
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