The stock of Tata Motors gained 5.4 per cent with above average volume on Monday, breaking above a key resistance level of ₹104.

With this rally the stock seems to have resumed the medium-term uptrend. It also provides traders with a short-term perspective an opportunity to buy the stock at current levels. Since it took support at around ₹64 in early April this year, the stock has been in a medium-term uptrend. While trending up, the stock had recently breached the 21-day moving average and had strengthened the uptrend. Short-term trend has been up since mid-June. The decisively breakthrough of a key resistance at ₹104 has reinforced the uptrend and the stock has the potential to trend upwards in the ensuing weeks. The daily RSI has entered the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region. Besides, the daily and weekly price rate of change indicators are hovering in the positive terrain implying buying interest.

There has been an increase in daily volume over the past month. The short-term outlook is bullish. Targets are at ₹113.5 and ₹116. Traders with a short-term view can buy the stock with a stop-loss at ₹106.5.

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

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