Technical Analysis

Sizzling Stocks: Tata Global Beverages (Rs 119.1)

Yoganand D. | Updated on November 15, 2017 Published on February 04, 2012

Tata Global Beverages soared 22 per cent accompanied by extraordinary volumes in the last week, following its announcement of joint venture with the Starbucks group. With this rally, the stock appears to have resumed its long-term uptrend that has been in place from its 2008 trough of Rs 43.

But as the stock has run up sharply, its daily indicators and oscillators have reached over brought levels. The stock is hovering well above the upper boundary of the daily Bollinger Bands indicating over bought position. It is also facing key resistance at around Rs 121. A corrective decline to Rs 115 or Rs 111 is possible in the near-term if the stock fails to move above Rs 121.

On the upside, emphatic break through of Rs 121 will take the stock higher to Rs 128 and Rs 138 in the medium-term. Significant medium-term support for the stock is pegged at Rs 105. A fall below this level will mar the current medium-term uptrend and pull the stock down to Rs 95 and to Rs 92 in the ensuing months.

Oriental Bank of Commerce (Rs 288.2)

Following OBC's results report for the quarter ended December '11, the stock continued its strong up move by gaining 11.7 per cent in the past week. Ever since bottoming out from its 52-week low of Rs 190 registered on January 2, it has been on a strong medium-term uptrend. The stock has surged 51 per cent from its 52-week low. It has further breached the upper boundary of daily Bollinger Bands representing over brought position.

Further, the stock has a significant long-term resistance band ahead between Rs 300 and Rs 307. A downward reversal from this resistance can drag the stock down to Rs 260 and to Rs 230. But a conclusive breakthrough of the aforementioned resistance band will set a new trading range for the stock and pave the way for a rally to Rs 345-355 range in the medium-term.

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