We recommend a buy in the stock of Tata Global Beverages from a short-term perspective. It is seen from the charts of the stock that it has been on an intermediate-term uptrend since its 52-week low registered at Rs 80 in late November 2011. However, the stock encountered resistance at Rs 128 in February and went through a corrective decline until it found support at Rs 100 in early May. Taking support at the stock's long-term base band between Rs 100 and 105, the stock resumed its uptrend. This base level also coincides with the stock's 50 per cent fibonacci retracement level of its prior up move and 200-day moving average. On Tuesday, the stock accelerated five per cent breaching a key resistance at Rs 112 as well as 21 and 50-day moving averages.

There is an increase in daily volumes over the past six trading sessions. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is moving higher in the neutral region. The daily moving average convergence divergence indicator has signalled a buy and is likely to enter the positive territory. The intermediate-term uptrend line is still in place. We are bullish on the stock from a short-term perspective. We expect its uptrend to carry forward and reach our price target of Rs 118.5 or Rs 122 in the days ahead. Traders with short-term perspective can buy the stock with stop at Rs 111.5.

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