Investors with a short-term horizon can buy the stock of Tata Coffee at current levels. The stock advanced 5.6 per cent accompanied by extraordinary volume on Thursday, reinforcing the bullish momentum. It now pauses, testing a key resistance at ₹118 with a positive bias. A conclusive break above this hurdle can take the stock northwards, strengthening the intermediate-term uptrend that has been in place since recording a low at ₹47 in March 2020. Within the uptrend the stock has been in a wide sideways consolidation phase in the band between ₹100 and ₹118 since August 2020. Recently the stock surpassed the 21- and 50-day moving averages and trades well above them. Both the daily and the weekly relative strength indices have entered the bullish zone backing the uptrend. Besides, the daily as well as the weekly price rate of change indicators have entered the positive terrain implying buying interest. The short-term outlook is bullish for the stock. It can surpass the current resistance at ₹118 and reach the short term price targets of ₹123.5 and ₹126 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹116.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading)

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