Todays Pick

TVS Motor Company (₹636.55): SELL

Gurumurthy K | | Updated on: Dec 17, 2021
image caption

 

The stock of TVS Motor Company has been in a strong downtrend since November. Within this downtrend, the stock was consolidating sideways in the past two weeks. The sharp 5.4 per cent fall on Thursday marks the end of this consolidation and also indicates the resumption of the overall downtrend. Immediate resistance is at ₹655. Next strong resistance is in the ₹680-₹690 region.

The upside is likely to be capped at ₹655 itself as any intermediate bounce is likely to get fresh sellers in the market. The outlook is bearish. The stock can fall to ₹600 initially. A break below ₹600 can drag it to ₹560-₹550. Traders can go short now and on a rise at ₹647. Stop-loss can be placed at ₹662. Trail the stop-loss down to ₹630 as soon as the stock moves down to ₹623. Move the stop-loss further down to ₹618 as soon as the stock falls to ₹608. Book profits at ₹605.

The stock will have to rise past ₹690 to become bullish again. But such a break looks unlikely as the fall on Thursday has been sharp which has turned the bias strongly bearish on the charts.

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

Published on December 16, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

COMMENTS
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you