A TECHNICAL UPDATE ON TATA ELXSI LTD—2.3.2023.

 

TATA ELXSI LTD

Open—6128.85--High—6243.95--Low—6123—Close—6194.60 on 1.3.2023.

Support: 6089/5990/5782/5709.05/5700/5613.95/5555.55/5340/5263.40/4750/4601/4373/4107/3868/3555

Resistance: 6285.90/6317.35/6382/6432/6730/6825/7123/7195/7636/7833/7964/8015/8330/8480/8685/8822/9059/9270/9420/9985/10760.

 (Bold and underlined figures are most important)

FOR TRADERS

The overall technical setup is terribly weak now and it is into deep corrective mode as it is way below its threshold point of 8339 and most importantly it is into bear market territory as it is well below its threshold point of 8608, furthermore it is also below its two critical points of 6317.35 & 6285.90(valid for 2023) which is concerning and if it remains below these points, it can drag it down further from here. Please note that sustained break below 6089 can trigger fresh fall and sustained break below 5709 may witness an accelerated fall. Therefore safe traders should avoid long trade till correction completion sign emerges. However aggressive traders can try long trade if it moves above 6317.35 and sustain on the closing basis with a stop loss of 6200 or more authentic stop loss of 6050 or going down at important support points (see the support level mentioned above) with a self defined stop losses for pullback gains. But please note that even after moving above 6317.35 nothing much may not happen because to gain strong foothold technically for the up momentum it has to move up way above from the present levels , chances of which seems  bleak in near term.  Since it is in corrective mode therefore it is suggested to adopt sell on the rise or sell on the price breakdown strategy till it gives visible sign of correction completion.

FOR INVESTOR

Kindly note that it is a good pedigree stock and one can get these types of stock cheaper only when they are technically weak. It is therefore suggested to accumulate the stock in a staggered manner on every deep decline day with time horizon of 3-5 years for decent gains. Moving down the good buying points could be at 5709---5629---4450---3650---2925---2550. For example one can initiate buying with 5% of the designated investment amount for the stock near 5709, 10% amount near 5629 and so on; it is suggested to increase the buying % on a very steep decline. It is important to mention here that as of now the range of 4000--3600 seems to be the worst price range for the stock on decline, but if it break 3600 and sustain then it could come down to 3200 & 2550 or  lower ,which may please be noted. Therefore it is suggested to structure your investment with due caution.

NOTE: - It is a technical assessment of the stock as of now, the technical interpretation changes with the price movement and time; therefore it needs periodic updating, which may please be noted.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

Note: Price stated here are of spot market.

                          Contact me for strategic guidance to enter and exit trade.

 Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.