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Investors with a short-term perspective can buy the stock of Tinplate Company of India at current levels.
The stock took support at around ₹120 in late June and changed direction triggered by positive divergence in the daily price rate of change indicator. The significant medium-term support at ₹120 had cushioned the stock in this February and again in May. This support is limiting the downside well. The stock has been in a near-term uptrend since late June.
On Tuesday, the stock gained 5.7 per cent with good volume breaking above a key resistance level of ₹130. There has been an increase in daily volume over the past four trading sessions. Both the daily and the weekly relative strength indices hover in the neutral region with an upward bias. The daily price rate of change indicator has entered the positive terrain implying buying interest. The stock has closed above the 21- and 50-day moving averages.
The short-term stance is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹142 and ₹144.5 in the ensuing trading sessions. Traders with a short-term view can buy with a stop-loss at ₹133.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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