stock to buy: Chart Check: Up 20% in a month! Does this 2-wheeler stock have more room for upside?
The 2-wheeler maker has been making higher highs and higher low formation for the past 1 month to hit a fresh 52-week high of Rs 840 but failed to hold on to the momentum and closed at Rs 763 on Friday.
The stock has rallied more than 20 per cent from Rs 615 recorded on May 10, 2022, to Rs 763 on June 10, 2022, which translates into an upside of over 24 per cent in a month.
It also gave a breakout from a downward sloping trendline on the weekly charts which is a positive sign for the bulls.
Investors holding the stock can remain invested while fresh money can be deployed on dips for a target of Rs 788-810 in the next 4-6 weeks, suggest experts.
On the price front, the stock is trading above crucial short-and-long-term moving averages of 5,10,20,30,50,100, and 200-DMAs which augers well for the bulls.
“TVS Motor is outperforming the benchmark index and has recently given a downward sloping trend line breakout on the weekly time frame. On the daily chart, the price has given a horizontal channel breakout and post that prices are continuously trading higher and showing the strength in the counter,” Rohan Patil, Technical Analyst at Bonanza Portfolio, said.
“If we observe from April 2020, prices are trading in a higher high higher bottom formation and that indicates a bullish momentum in the counter,” he said.
The majority of the indicators and oscillators are suggesting bullish momentum.
Patil further added that the counter is also trading near the upper band of the Bollinger band on the daily chart which indicates a possible continuation of the uptrend after the recent consolidation.
“One can initiate a buy position at Rs 764 and more at dips near Rs 750 with a stop loss of Rs 712 and the first target can be seen at Rs 788 and the longer-term target at Rs 810 levels,” recommends Patil.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
