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Tata Chemicals Technical Analysis #87: Sell | Target Rs 550 | Arijit Banerjee

OUR RECOMMENDATION

CMP#582.3
IdeaSELL
Sell Range592 – 582
Target550 – 540
StopLoss*610
Duration15 – 20 Trading Sessions
Potential Return^6 – 7%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
582.3SELL592 – 582550 – 54061015 – 20 Trading Sessions6 – 7%

# CMP on Oct 01, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 566.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Tata Chemicals limited manufactures, sells and distributes dense and light soda ash, crushed refined soda, portland cement, sodium bicarbonate, caustic soda, gypsum etc. in India, Europe, Asia and United states. The company sells it’s products under few established brand name Tata Salt, Tata Salt Plus, I-Shakti Salt, Tata Sampann Spices, Tata Shudh etc. Founded in 1939, headquartered in Mumbai India, the Company has a global presence in India, Europe, Asia and United states.

Stock Data
NSE CodeTATACHEM
Sectoral IndexNifty 500
52W High727.4
52W Low543
Face Value10
Relative Performance_Tata Chemical vs Nifty 500

TECHNICAL OBSERVATIONS (WEEKLY)

  • On the weekly chart, price has been trending in a downward sloping channel over the last twelve months.
  • Price is currently near the upper range of this channel. Past price action indicates an expected price to fall from here.
Tata Chemicals Weekly Chart
Tata Chemicals Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • Technically the stock had been moving in the lower top and lower bottom formation indicating positive bias.
  • The On Balance Volume (OBV) closed below 15 days OBV Average which is considered a bearish setup and help to propel further downside movement.
Tata Chemical Daily Chart
Tata Chemical Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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