Technical Analysis

Tata Global Beverages (₹243): Sell

Yoganand D BL Research Bureau | Updated on July 17, 2018 Published on July 16, 2018

Investors with a short-term perspective can sell the stock of Tata Global Beverages at current levels. The stock tumbled 6 per cent accompanied by an above average volume, breaching a key support at ₹255 on Monday. With this fall, the stock appears to have resumed its intermediate-term downtrend that has been in place from the January high of ₹328.

In early July, the stock encountered a key resistance at around ₹280 and continued to decline. It has decisively breached the moving average compression (21-, 50- and 200-day moving averages) at around ₹270 recently. The daily relative strength index has entered the bearish zone from the neutral region and the weekly RSI is on the brink of entering the bearish zone from the neutral region. Moreover, both the daily and weekly price rate of change indicators feature in the negative terrain implying selling interest.

The short-term outlook is bearish for the stock. It can extend the downtrend and hit the price targets of ₹233 and ₹228 in the upcoming trading sessions. Traders can sell the stock with a stop-loss at ₹248.

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

Published on July 16, 2018
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