Podcast | Today's Pick: Tata Consumer Products (₹276.7)-Buy

| Updated on March 25, 2020

Investors with a short-term horizon can buy the stock of Tata Consumer Products formerly known as Tata Global Beverages at current levels. The stock jumped almost 11 per cent on Wednesday, surpassing a key resistance at ₹260 decisively.

Recording a recent low at ₹214 on Tuesday, the stock took support at around ₹215 and bounced up strongly with good volume on that session. Triggered by positive divergence in the daily RSI, the stock jumped 11 per cent on Wednesday, conclusively breaking above a vital long-term resistance at ₹260.

The daily as well as the weekly RSIs are on the brink of entering the neutral region from the bearish zone. Further, the daily price rate of change is recovering from the oversold territory.

The recent rally in the stock has the potential to extend the up-move in the short-term. As the stock is showing initial signs of trend reversal and has surpassed a key resistance at ₹260, the short-term outlook appears to bullish.

Taking a contrarian stance, trader with a short-term view can buy the stock at current levels with a stop-loss at ₹268 levels. Targets are ₹290 and ₹297 levels.

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

Published on March 25, 2020

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