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Investors with a short-term perspective can consider buying the stock of Tata Coffee at current levels. The stock has been in a short-term uptrend since taking support at around ₹117 in early August. After pausing at around the resistance level of ₹135 in late August, the stock surpassed it decisively in early September. Moreover, the stock is now trading well above its 21- and 50-DMAs.
On Wednesday, the stock advanced 5.5 per cent with extraordinary volume, breaking above a key long-term resistance at ₹145. With this rally, the stock appears to have resumed its long-term uptrend that has been in place since the May 2016 low of ₹85. The daily as well as weekly price rate of change indicators are hovering in the positive territory, implying buying interest.
The short-term outlook is bullish for the stock. It can extend the uptrend and reach the price targets of ₹158 and ₹161 levels. Traders can buy the stock with a stop-loss at ₹148 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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