Todays Pick

Tamil Nadu Newsprint & Papers (₹119.2): Buy

Yoganand D BL Research Bureau | Updated on July 07, 2020

Investors with a short-term perspective can buy the stock of Tamil Nadu Newsprint & Papers at current levels.

The stock took support in the band between ₹85 and ₹88 in early April and again in early May this year. Subsequently, the stock has been in a short-term uptrend since May. In June, the stock decisively breached a key resistance at ₹104 and continued to trend upwards. Also, the stock had conclusively breached its 21- and 50-day moving averages in early June and trades well above these moving averages. Following a corrective decline, the stock took support at ₹109 and bounced up recently. On Tuesday, the stock surged 7 per cent with above average volume, strengthening the short-term uptrend.

The daily relative strength index has entered the bullish zone and the weekly RSI is charting higher in the neutral region. Both the daily and the weekly price rate of change indicators are hovering in the positive terrain implying buying interest. The short-term outlook is bullish for the stock. It can extend the uptrend and reach the price targets of ₹124 and ₹127. Traders can buy with a fixed stop-loss at ₹116.

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

Published on July 08, 2020

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