Stock Idea - TVS Motor Company Ltd By Choice Broking
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After making a 52-week high at 666 levels, stocks have shown correction from the top and made a low at level 495 level and bounced from there, which is 38.2% RL of its previous up move. Moreover, the stock has given breakout of its 52-week high with increase in volume activity as well as trading near to its April 2018 high, i.e., 674, which suggest strength for upside in the counter.
Ona monthly chart, the stock has formed a “Bullish Harami" candlestick pattern, which indicates anupside move in the counter.
Ona daily chart, the stock has given a breakout of the rounding bottom formation which points toa bullish momentum in the counter.
Additionally, the price has also moved above the upper leg of “Bollinger Band” which suggests a bullish rally will continue further in the near-term.
Furthermore, the stock has been trading above 21*50 Days Moving Averages, which is a bullish crossover which shows a positive trend for the time being. Adaily momentum indicator RSI and Stochastic both have shown positive crossover, which adds more bullishness to the price.
Hence, based on the above technical structure one can initiate a long position in TVSMOTOR at CMP 670 or a fall in the price till 650 levels can be used as a buying opportunity for the upside target of 750-800 while the supports placed at around 625 or 600 levels, so one should keep the stop loss of 600 ona closing basis.
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