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Investors with a short-term horizon can buy the stock of Tinplate Company of India at current levels. The stock’s key long-term support band between ₹55 and ₹57 halted its intermediate-term downtrend in early February this year. Triggered by positive divergence in the daily moving average convergence divergence indicator, the stock changed direction taking support from the base zone. Since then, the stock has been in a nascent uptrend.
On Tuesday, the stock decisively breached its intermediate-term downtrend-line by gaining 8 per cent with above average volume. Moreover, the rally has also conclusively breached the 21- and 50-day moving averages. As the daily and weekly price rate of change indicators feature in the positive terrain, buying interest is evident. The short-term outlook is bullish. Tinplate can extend the uptrend and reach our price target of ₹67.5 and ₹69 in the upcoming sessions. Buy the stock with a stop-loss at ₹63.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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