We recommend a buy in the stock of Tata Global Beverages from a short-term perspective. It is evident from the charts that the stock has been on a medium-term uptrend since taking support at around Rs 123 in early April. The short-term trend is also up for it.
During the third week of July, the stock decisively breached its key resistance as well as its 200-day moving average at around Rs 150. This subsequently turned into a support level and provided base for the stock in the previous week. The stock is trading well above its 50- and 200-day moving averages.
On Monday, it gained almost 2 per cent accompanied by above average volume, reinforcing the uptrend. We notice that there is an increase in daily volume over the past three trading sessions.
Both daily and weekly price rate of change indicators are featuring in the positive terrain indicating buying interest.
We expect the stock’s rally to continue and reach our price target of Rs 164 or Rs 166.5 in the approaching trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 156.7 level.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)