Comments
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
Comments
COMMENT NOW
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.