Todays Pick

Tata Consumer Products (₹700): Buy

Akhil Nallamuthu BL Research Bureau | Updated on June 08, 2021

The stock of Tata Consumer Products Limited made a fresh breakout of ₹686 on Monday and hit a fresh lifetime high of ₹707 before tracing back a little and closing at ₹700. This has strengthened the case for bulls as the breakout increases the chances for a fresh leg of uptrend and so, one can consider buying this stock.

The scrip, which has been in an uptrend since March 2020, faced a notable price correction between September and October as it lost about 22 per cent by falling from the then high of ₹592 to make a low of ₹459. But since ₹460 acted as a strong support, the uptrend regained momentum and stock resumed moving northwards. Since then, the stock is gaining steadily with intermittent corrections.

On Monday, it went beyond the prior high and the indicators like the RSI and the MACD on the daily chart indicate good bullish momentum. Also, the breakout volume is good. Considering the above factors, traders can go long with stop-loss at ₹686 for a target of ₹725.

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

Published on June 08, 2021

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