Technical Analysis

Tanla Solutions (₹75.7): Buy

Yoganand D BL Research Bureau | Updated on January 23, 2020 Published on January 24, 2020

The stock of Tanla Solutions gained 5 per cent with above average volume on Thursday, breaking above a key resistance in the band between ₹70 and ₹72. Investors with a short-term horizon can buy the stock at current levels.

Since it took support at ₹43.5 in early November, the stock has been in a medium-term uptrend. But it has encountered a key resistance at around ₹70 in December and thereafter started to move sideways with an upward bias. The ongoing rally has helped the stock to surpass the significant medium-term resistance in the band between ₹70 and ₹72.

The stock had breached its 21-day moving average and hovers well above both 21- and 50-day moving averages. The short-term trend is up now.

There has been an increase in daily volume over the past three trading sessions. The daily relative strength index features in the bullish zone while the weekly RSI has decisively entered the bullish zone from the neutral region. Both the daily and the weekly price rate of change indicators hover in the positive territory implying buying interest.

Overall, the short-term outlook is bullish for Tanla Solutions. It can extend the uptrend and reach the price targets of ₹79 and ₹81 in the upcoming trading sessions. Traders can buy with a deep stop-loss at ₹73.

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

 

Published on January 24, 2020
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