TATA CHEMICALS LTD
Open-314.50--High-321.90--Low-314.05—Close-317.30
on 20.8.2020
Support:309.60/306/301/297---291/289.25.
Resistance: 324.20/338/354.40/381/419/438.
Critical Points moving up:--324.20---335---338 sustained close above 338 can take it higher with reasonably fast speed.
Critical Points moving down:--297---291----289.25, sustained break below it may drag it down.
(Bold and underlined figures are most important)
It has been moving sideways for quite some time in the range of 315---289.25 and it gave price and volume breakout from this range on 18.8.2020, but the major breakout will happen once it crosses 324.20 marks. However, the recent breakout has given a distinct signal that the major breakout may happen in coming days and it could move up sharply but moving up it has very critical and important hurdle at 335& 338 therefore one can expect smooth and steady up only once it moves above 338 and sustain on the closing basis. The possible targets once it sustain above 338 could be 354.40---381---437---488.40---557. Similarly moving down it will find support at 309.60---306---297---289.25. Sustained break below 289.25 could drag it down fast which may please be noted. The long term technical setup is not that great but since it has been consolidating in a broad range of 324.20—289.25 from 8.6.2020 and now near the upper end of the range, therefore a reasonable to good rise can be expected once it gives the breakout from 324.20 top, which is a strong possibility and then if it moves above 338 and sustain on the closing basis it will give good push to the up momentum, which may please be noted.
In view of the above observation short term
investors can enter the stock with small quantity now and then buy on decline
at appropriate points but not below 297
with a stop loss of 287. Traders can
also buy on decline but not below 301
with a stop loss of 296, but in this
trade it can still move sideways for few days before moving up, so traders may
feel insecure, but buying above 324.20
could take it up much faster. Therefore investor and traders can initiate long trade
as per their risk appetite and patience. The short term technical parameters as
of now indicate that the up move may be ahead. It is strongly suggested to
trail your stop losses (with the help of support levels mentioned above) in the
profitable trade to avoid losses completely. PLEASE NOTE THAT IT IS PURELY A TECHNICAL BUY CALL. DO NOT TRADE OR
INVEST WITHOUT STOP LOSS.
NOTE: - It is the technical assessment of the stock as of now, the technical
interpretation changes with the price movement and time, therefore investors
are advised to look into fundamental, financial details of the company and last
but not the least management perception for the future of the company before
taking investment decision.
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 favourable 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
Mobile—8240951127/9831313654.
