Comments
We recommend a sell in Tata Motors — DVR from a short-term perspective. It is evident from the charts of the DVR that following a medium-term uptrend from its July low of Rs 117, the DVR encountered resistance at around Rs 173 last week. Testing this resistance, the DVR started to decline triggered by negative divergence in the daily relative strength index and price rate of change indicator.
On Tuesday, the DVR fell almost 4 per cent breaching its immediate support at Rs 165. The DVR is losing its bullish momentum. The daily RSI has entered the neutral region from the bullish zone and weekly RSI also entered the neutral region. The daily moving average convergence divergence indicator has signalled a sell and has begun to decline in line with the DVR price.
We take a contrarian stance on the DVR from a short-term perspective. We expect its decline to prolong and reach our price target of Rs 155 or Rs 151.5 in the ensuing trading sessions. Traders with short-term perspective can consider selling the DVR while maintaining stop-loss at Rs 165 levels.
Comments
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.