Idea 2 Act: Tata Investment Corporation Ltd

Buy - TATAINVEST

CMP (NSE) 10:50, 24 Sep

1,300.40 10.050.78%

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Reco. Price

790

Period

6-Months

Target Price

949

upside

20%

Stop Loss

699

Last updated on

17 Jul, 2017

Triangle & Long term consolidation breakout

Tata Investment corp. is trading in a strong higher top higher bottom chart structure. Analyzing the shorter time frame, on daily chart, the stock has given a Triangle breakout. Tracking the recent trading activity, the stock is continuously forming long positions with a rise in delivery volumes and a positive convergence on MACD histogram, indicating a strong momentum. Moreover, with ADX index reading above 25 mark along with +DI > -DI, further accentuate our positive stance on this stock. The stock has a potential first target of Rs 949, translating into ~20% returns.

Analyzing the longer time frame, on monthly chart, the stock is breaking out from a long term consolidation breakout pattern. The up thrust has been accompanied with credible volumes, indicating strength in the current upswing.

Based on the above evidences, the projection of the structure indicates potential target of Rs 949, translating into ~20% upside. The breakout would stand void if Tata Investment Corp. limited breaks below Rs 699 on closing basis.

Monthly Chart

Index vs Stock Relative Chart

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