Tata Motors surge over 8 per cent; gives trendline breakout
Considering the daily timeframe, the stock of Tata Motors Limited has given a downward sloping trendline breakout along with robust volume.
The stock has also managed to close above the upper Bollinger band and started the band walk, which is a very bullish sign. Additionally, the stock has formed a sizeable bullish candle on the breakout day, which adds strength to the breakout.
The stock is currently trading above its short and medium-term moving averages, i.e. 20-day EMA, 50-day EMA, and 100-day EMA level. The leading indicator, 14-period daily RSI, is currently quoting at 62.70 and it is in a rising trajectory. The fast stochastic is also trading above its slow stochastic line. Moreover, on the daily time scale, the know sure thing (KST) has given a bullish crossover.
Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with the bullish bias. On the downside, important support for the stock is placed at the zone of Rs 105-Rs 102.50 and on the upside; an immediate resistance is seen at Rs 119.15.
On Monday, the stock of Tata Motors closed at Rs 113.05 per share, surged by 8.03 per cent. The stock opened at Rs 103 per share and hit an intraday high of Rs 114.40 and a low of Rs 102.90 per share on NSE.