Tata Consumer Products Shows Strong Breakout, Analysts Predict it to Surpass Rs 1,000

Rajesh
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Tata Consumer Products, a prominent player in the consumer goods sector, has experienced a significant surge in its stock value. Analysts anticipate the stock to exceed Rs 1,000, as it demonstrates a bullish trend in the market.

Tata Consumer Product

Since the last week of May, the stock's 50-day exponential moving average (EMA) has surpassed the 200-day EMA and has consistently remained above all key moving averages. This positive momentum has contributed to the stock's robust performance on June 14, despite market consolidation, with an impressive rise of over 5 percent, bringing it closer to its record high of September 2021.

On the technical charts, Tata Consumer Products has notably broken out of a long-term downward sloping resistance trendline, which connects the high points of September 7, 2021, and September 14, 2022. Additionally, the stock has witnessed a breakout of a horizontal resistance trendline that connects multiple touchpoints.

Following its record high in September 2021, the stock entered a consolidation phase. After reaching its second-highest peak on September 14, 2022, the stock experienced a 20 percent decline, hitting a bottom in March 2023. However, since then, it has been forming a pattern of higher highs and higher lows, resulting in a 26 percent gain thus far.

In a significant development, Tata Consumer Products has undergone a golden crossover, where the 50-day EMA crossed above the 200-day EMA and has remained above all key moving averages since the last week of May. This crossover suggests a strong bullish signal for the stock.

Currently trading at Rs 861.50 on the National Stock Exchange, the stock has witnessed a 5.07 percent increase as of 14:53 hours IST, accompanied by significantly higher trading volumes.

If the stock surpasses its previous record high of Rs 889, market analysts anticipate that it will cross the Rs 1,000 mark. Additionally, the stock is expected to find support at levels ranging from Rs 800 to Rs 850.

According to Viraj Vyas, a technical and derivatives analyst at Ashika Stock Broking, "The stock has witnessed an impressive rally since the lows of the COVID pandemic in March 2020. In recent months, the stock has experienced a rally from around Rs 700 to approximately Rs 860." Vyas further suggests that the immediate resistance level is expected to be around Rs 875-880. If the stock maintains its position above this level, it could indicate further bullish momentum. The next target levels for the stock are projected to be around Rs 1,050-1,020, with critical support at Rs 800.

Another expert, Vidnyan Sawant from GEPL Capital, highlights that the recent breakout from the descending channel indicates the beginning of an upward trend, with potential targets reaching higher levels around Rs 960. In the event of a pullback, Sawant suggests that the stock may find strong support at the Rs 850 level.

Please note that the views and investment tips expressed by the aforementioned experts are their own and do not necessarily reflect the opinions of the website or its management. It is advisable to consult certified experts before making any investment decisions.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute investment advice. The website and its management do not guarantee the accuracy or completeness of the information and shall not be held responsible for any investment decisions made based on the information provided herein.

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