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We recommend a buy in the stock of >Tata Global Beverages from a short-term perspective. It is seen from the charts of the stock that following a medium-term downtrend from its all-time high of Rs 181 registering in November 2012, the stock took support at Rs 135 last week. The stock's long-term uptrendline, a key support and its 200-day moving average at around Rs 135 provided base for it. Subsequently, the stock changed its direction triggered by positive divergence in daily relative strength index and price rate of change indicators.
On Tuesday, the stock advanced 3 per cent breaching its 21-day moving average and reinforcing the bullish momentum. The daily RSI has entered the neutral region and is moving higher in this region. The daily moving average convergence divergence indicator has signalled a buy.
Taking into consideration that the stock is reversing higher from key base zone and as its long-term uptrendline is still in place, we are optimistic from a short-term perspective. We expect its rally to continue and reach our price target of Rs 152.5 or Rs 155.5 in the ensuing trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 143.3 levels.
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