Technical Analysis

Tech query: Tata Motors-DVR reverses down from key hurdle

Yoganand D | Updated on February 20, 2021

What is your view on Tata Motors-DVR?

Jitendra K Sarawgi

Tata Motors-DVR (₹123.4): Since bottoming out in March 2020 after registering a 52-week low at ₹28, the stock of Tata Motors-DVR has been on an intermediate-term uptrend. It has delivered good returns since the March low.

In January this year, the stock breached a key long-term resistance at ₹80 and continued to accelerate, thereafter breaching another resistance at ₹100. However, it recently encountered a resistance at around ₹140 and began to correct. The stock declined 6.3 per cent last week, and has formed a bearish engulfing candlestick pattern on the weekly chart that has short-term bearish implications.

Continuation of the decline can drag the stock down to ₹113 initially and then to ₹100. As long as the stock trades above ₹100, the short-term uptrend will remain bullish.

But a strong fall below this base can pull the stock down to ₹90 and then to ₹80 levels, which is a significant long-term support to watch.

If the stock plummets below ₹80, the selling pressure will be back, and the stock can decline to ₹72 and then to ₹67 levels over the medium term. On the upside, a break above ₹140 can reinforce the bullish momentum and take the stock higher to ₹160 and then to ₹200 in the long run. Investors with a long-term view can stay invested with a stop-loss at ₹70 levels.

I bought shares of AWHCL at ₹460, but it is now falling continuously. Should I hold or sell?

Bhanuthej Bhat

Antony Waste Handling Cell (₹301.9): The stock of Antony Waste Handling Cell (AWHCL) has been trending down since its listing in early January this year.

After marking a high of ₹492.7 on the listing day (January 1, 2021), the stock began to decline. Since then, it has been on a short-term downtrend.

With the limited price history available, the stock formed a key base at ₹276 in late January. It witnessed a short-lived corrective rally thereafter. The stock encountered a resistance at ₹335 in early February; this level could act as a vital barrier now.

A strong break above this level can take the stock higher to ₹350 and then to ₹360 levels. A strong rally above ₹360 can pave the way for an upmove to ₹375.

To bring back bullish momentum, the stock needs to emphatically break above ₹375.

In that case, it can trend upwards to ₹400. Subsequent resistances are placed at ₹430 and ₹450 levels.

On the downside, a conclusive plunge below ₹276 can pull the stock down to ₹250 and then to ₹325 levels.

You can average the stock on a rally above ₹335 and exit it thereafter at around ₹400 while maintaining a fixed stop-loss.

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Published on February 20, 2021
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