Investors with a short-term perspective can consider buying the stock of Tata Motors at current levels. The stock gained 7.4 per cent accompanied by good volume on Monday decisively breaching above the 21- and 50-day moving averages.
Since last October, the stock has been in a sideways consolidation phase in a wide range between ₹150 and ₹200. Within this range, the stock has been in a short-term uptrend since registering a 52-week low of ₹141.9 in February 2019. The stock has strengthened the short-term uptrend and has potential to continue the trend. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the neutral region. There has been an increase in daily volume over the past two trading sessions.
Both the daily as well as the weekly price rate of change indicators are hovering in the positive terrain implying buying interest. The short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹195 and ₹198.5 in the upcoming sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹183.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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