Technical Analysis

TVS Motor Company (₹535): Sell

Yoganand D BL Research Bureau | Updated on January 02, 2019 Published on January 02, 2019

Investors with a short-term perspective can consider selling the stock of TVS Motor Company at current levels. On Wednesday, the stock tumbled 5.3 per cent accompanied by above average volume, breaching a key support level of ₹550.

Following a short-term uptrend, the stock encountered a key resistance in the band between ₹590 and ₹600 in early December 2018. Subsequently, the stock surged and after testing the 200-day moving average, reversed direction.

The recent fall also breached the 21- as well as 50-day moving averages and the stock currently trades well below them. The daily relative strength index is on the brink of entering the bearish zone from the neutral region and the weekly RSI is charting downwards in the neutral region.

The short-term outlook is bearish for TVS Motor. The stock can continue to decline and reach the price targets of ₹512 and ₹502 in the ensuing trading sessions. Traders with a short-term view can sell the stock with a stop-loss at ₹547.

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

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