We recommend a buy in the stock of Tata Motors-DVR-A from a short-term perspective. It is apparent from the charts of the stock that after retracing 61.8 per cent fibonacci retracement of previous up-move, the stock found support in the band between Rs 145 and Rs 150 last week. Its medium-term downtrend that started from its January peak of Rs 189 appears to have halted. The stock subsequently changed direction triggered by positive divergence in daily relative strength index.

On Thursday, the stock emphatically broke through a key resistance as well as 200-day moving average at Rs 157 by jumping 3.7 per cent with good volume. For the week, the stock has gained more than 8 per cent. The daily and weekly RSI are climbing higher in the neutral region towards the bullish zone. The daily moving average convergence divergence indicator has signalled a buy. Further, the daily price rate of change indicator has entered the positive terrain implying buying interest.

Our short-term outlook on the stock is bullish. We expect its rally to continue and reach our price target of Rs 169 or Rs 172 in the approaching trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 159 level.

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

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