Comments
The outlook for the stock of Tata Chemicals is bullish. The stock surged 4.8 per cent on Wednesday in spite of the benchmark indices closing in the red. The stock was in a corrective fall from the high of ₹574.8 recorded on September 8. This fall halted at a low of ₹504 on September 29 and the stock had reversed higher thereafter.
Wednesday’s rally has broken a vital resistance at ₹555 and also confirms the end of the corrective fall. An inverted head and shoulder bullish pattern is also visible on the daily chart with a neckline at ₹555. A rise to test the next resistance at ₹581 is possible in the near-term. A strong break above this hurdle can take the stock higher to ₹600 or ₹610. Investors with a short-term perspective can buy the stock. Stop-loss can be placed at ₹545 for a target of ₹595. Revise the stop-loss higher to ₹571 as soon as the stock moves up to ₹580. The bullish outlook will get negated if the stock fall decisively below ₹555.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.