After touching a low of 63.5, Tata Motors has been rallying for the last five months making higher tops and higher bottoms.
By Subash Gangadharan
Buy Tata Motors
After touching a low of 63.5, Tata Motors has been rallying for the last five months making higher tops and higher bottoms. Last week, the stock found support at the 121 levels which corresponds to the 200-day EMA and rallied smartly. On Wednesday, the stock broke out of the 138-148 levels on the back of healthy volumes, which indicates the uptrend looks set to continue.
Technical indicators are giving positive signals as the stock trades above the 20-day SMA and 50-day SMA. Intermediate momentum readings like the 14-week RSI too are in rising mode and not overbought.
We believe the stock is ready to continue the next leg of its underlying uptrend and has the potential to move higher in the coming weeks. We therefore recommend a Buy between the 148-152 levels. CMP is 151.5. Stop loss is at 141 while targets are at 174.
Buy Infoedge India Ltd (Naukri)
After testing a low of 1581 in March 2020, Infoedge India has been steadily rising and making higher tops and higher bottoms over the last few weeks. Today, the stock broke out of the 3200-3422 trading range on the back of above average volumes, which is encouraging.
Technical indicators are giving positive signals as the stock trades above the 20-day and 50-day SMA and the 14-day RSI is in rising mode and above its 9-day EMA.
We recommend a Buy between 3440 and 3500 with a SL at 3340 and Target of 3820 for 22 trading sessions. CMP is 3494.
(Subash Gangadharan is a Technical Research Analyst at HDFC Securities. The views expressed are the author’s own. Please consult your investment advisor before investing.)