Tata Global Beverages (₹178.7)

Investors with a short-term perspective can consider buying the stock of Tata Global Beverages at current levels. The stock jumped 9 per cent on Monday, decisively breaching a key long-term resistance at ₹175 accompanied with extraordinary volume. Moreover, the stock has breached its 21- and 50-DMAs. With this rally, the stock appears to have ended its near-term corrective decline and resumed its uptrend.

Since taking support at around ₹116 in December 2016, the stock has been on an intermediate-term uptrend which is still intact. Last week, the stock took support at ₹155 and bounced back witnessing buying interest. The near-term trend is up for the stock. There has been an increase in daily over the past three trading sessions. The daily relative strength index has entered the bullish zone from the neutral region. The weekly RSI continues to feature in the bullish zone, backing the primary uptrend. Both the daily and weekly price rate of change indicators hover in the positive terrain implying buying interest.

Short-term outlook is bullish for the stock. Buy the stock in dips with a stop-loss at ₹174.5 levels. The targets are ₹186 and ₹190 levels.

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

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