Investors with a short-term perspective can buy the stock of Tata Chemicals at current levels. After registering a 52-week high at ₹345 in late August this year, the stock began to decline. The stock was on a corrective decline until it found support at ₹280 late September. Thereafter the stock changed direction, triggered by positive divergence in the daily relative strength index and has been in a short-term uptrend.

Recently, the stock surpassed its 50-day moving average and trades above the 21- and 50-DMAs. On Wednesday, the stock rose 3.4 per cent, accompanied by above average volume, breaching a key immediate resistance at ₹310.

This rally has strengthened the short-term uptrend. Further, the bullish momentum is intact. There has been an increase in volume over the past two trading sessions. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI hovers in the neutral region.

Moreover, the daily and the weekly price rate of change indicators are featuring in the positive terrain, implying buying interest. Overall, the short-term outlook is bullish. It can continue to trend upwards and reach the price targets of ₹331 and ₹337 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹311 levels. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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