Short-term traders can look to buy the stock now or on marginal dips for a possible target above 1300 levels in the next 3-4 weeks, suggest experts.
The stock rose from Rs 956 as on 7th December 2023 to Rs 1261 recorded on 7th March 2024 which translates into an upside of over 30% in just 3 months.
Tracking the momentum, the stock hit a fresh record high of Rs 1269 on 7th March 2024. However, it witnessed some profit-taking on 11th March, but the trend is still on the upside.
The stock gave a breakout after 6 weeks of consolidation on the weekly charts. It surpassed its swing high of Rs 1216 recorded on 15th January 2024 last week. The stock closed at Rs 1261 on 7th March 2024.
The stock is in an uptrend and is one of the top performers in the FMCG space.In terms of price action, the stock is trading above short- and long-term moving averages such as 5,10,30,50,100 and 200-DMA on the daily charts.The daily Relative Strength Index (RSI) is at 77.5. RSI above 70 is considered overbought. This implies that stock may show pullback. The daily MACD is above its center and signal Line, this is a bullish indicator.
“Tata Consumer is in an overall uptrend and forming higher lows on a monthly scale from the past twelve months. On the weekly scale it formed a strong bullish candle and gave Flag breakout after six weeks with a good surge in volumes,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.
“On the daily scale the stock gave consolidation breakout as well and perfectly trading above its 50-DEMA. The stock has been a huge outperformer within the FMCG space and is likely to scale new record highs,” he said.
Momentum indicator Relative Strength Index (RSI) is also on the verge of positive crossover which indicates momentum to pick up in coming sessions.
“Looking at the overall chart structure we are recommending to buy the stock with a stop loss below 1175 levels on a closing basis for a new lifetime high target towards 1320 zones,” recommended Beriwal.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
