tata motors share price: Chart Check: Stochastic triggers buy; this automobile maker likely to surpass Nov 2021 highs
The stock is making higher highs and higher lows in the past 3 weeks. It has rallied by about 5% in the same period.
Experts see the momentum to continue as the recent bounce back could help the stock take out the recent peak of Rs 417 recorded on September 26 on the daily charts.
Short-term traders willing to take risks can look at buying the stock now or on dips for a possible target above Rs 500 levels in the next 4-8 weeks, suggest experts.
The stock is showing signs of strength and Stochastic oscillator, a momentum indicator, gave a fresh buy signal, signifying strength.
On the price front, the stock is trading above most of the short-term moving averages such as 5,10,20 and 30-DMA but below 50,100, and 200-DMA.
The Relative Strength Index (RSI) is at 52.2. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed.
“This stock had a strong rally from the levels of Rs 63.50 to the levels of Rs 536 post Covid, corrected back to the levels of Rs 366 where it found support. It can be observed that the stock has been consolidating for the past three quarters & is likely to resume its next leg of up move,” Sujit Deodhar, Head – Technical Analyst, Wellworth Share & Stock Broking, said.
On weekly charts, the Bollinger Mid band (100 Bollinger period with 2 standard deviations) is placed at Rs 380 levels, which will act as support for this stock.
“Stochastic oscillator, which is a momentum indicator, exhibits a fresh buy signal by exiting the oversold zone,” added Deodhar.
“At current levels of Rs 413 & on dips up to Rs 380 levels, the stock offers a good risk-reward ratio to get into long positions with strict stop loss below Rs 360 levels on a daily close basis,” he recommended.
He added that two targets of Rs 545 & Rs 635 levels can be placed for profit booking in this stock with a holding period of the next 4-8 weeks.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
