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The stock of Tata Global Beverages jumped 5 per cent breaking above a key resistance at ₹270 on Wednesday. This rally has strengthened the short-term uptrend and also provides traders with a short-term horizon an opportunity to buy the stock at current levels.
The stock has been in an intermediate-term uptrend since early February 2019 low at ₹177. During the uptrend, the stock had decisively breached a key resistance at ₹220 in May and continued to trend upwards. Short-term trend is also up for the stock.
Last week it took support at ₹256 and resumed the uptrend. The stock trades well above the 21- and 50-day moving averages. There has been an increase in daily volume over the past three trading sessions.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the bullish zone. Moreover, the daily and weekly price rate of change indicators are hovering in the positive territory implying buying interest.
Overall, the short-term outlook is bullish. The stock can extend the uptrend and knock the price targets of ₹291 and ₹297 in the coming trading sessions. Traders can buy with a stop-loss at ₹274.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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