The stock of Tata Consumer rebounded sharply in yesterday’s session after witnessing a fall on Monday. It has been in a long-term uptrend and the price is likely to gain further from the current levels. After registering a low of ₹213.7 in late March when the broader market was under pressure, the scrip was quick and sharp in recovering. Since then, the stock has been on a strong rally as it consistently bounced off the 21-day moving average (DMA) and in fact it marked an all-time high of ₹561.4. This indicates a strong upward momentum.
Similarly, the price seems to have bounced from the 21-DMA on Tuesday as well, hinting that the stock could be heading for another leg of rally. The relative strength indicator and the moving average convergence divergence indicator are in their respective bullish territory. So, the stock can be expected to make fresh highs from here and traders can initiate fresh long positions with stop-loss at ₹535. On the upside, the stock is likely to advance to ₹570 in the near-term.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)