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Investors with a short-term perspective can buy Tinplate Company of India. Since its March 2020 low at around ₹56, the stock has been in a long-term uptrend, forming higher peaks and higher troughs. The stock took support in the band between ₹150 and ₹160 this March and resumed the uptrend, following a corrective medium-term downtrend.
However, it met with a resistance at ₹235 in early May and witnessed a sideways consolidation phase. On Monday, the stock has breached the downward sloping trend-line of symmetric triangle pattern by gaining 5.5 per cent with good volume. Also, it has conclusively surpassed the 21- and 50-day moving averages.
The daily relative strength index has entered the bullish zone from the neutral one and the weekly RSI continues to feature in the bullish zone.
Overall, the short-term outlook is bullish for the stock and it can reach targets of ₹231 and ₹236. Traders can buy the stock with a stop-loss at ₹216.5.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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