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Tata Elxsi Technical Analysis #20: Sell | Target Rs 850 | Arijit Banerjee

OUR RECOMMENDATION

CMP#912.8
IdeaSELL
Sell Range930 – 910
Target850 – 820
StopLoss*950
Duration25 – 30 Trading Sessions
Potential Return^7 – 10%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
912.8SELL930 – 910850 – 82095025 – 30 Trading Sessions7 – 10%

# CMP on Jan 25, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 881.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Tata Elxsi provides product design and engineering, system integration and support services in India, US and Europe. The company offers solutions for product engineering, design, Big Data analytics, Internet of Things, content development, artificial intelligence, virtual reality, and systems integration and caters to various industries such as Aerospace, defense, consumer electronics, healthcare, telecom and transportation industries, entertainment etc. Tata Elxsi posts 15% decline in net profit at Rs 27.76 crore in Q3FY19; revenue up 7.5% on a quarterly basis.

Stock Data
NSE CodeTATAELXSI
SectorNifty IT
52W High1490.9
52W Low908.1
Face Value10
Relative Performance_TATA ELXSI vs Nifty IT Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • The stock formed well defined Symmetrical Triangle Pattern over last 14 weeks and breakout below the lower side shows further bullishness.
  • Stock Price recently make Breakout below the true crucial Weekly Multiple Support, at Rs.920.
Tata Elxsi Weekly Chart
Tata Elxsi Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • The registered a resolute breakout past the eight weeks consolidation signalling resumption of the primary downtrend.
  • The stock is trading well below its EMA-5, EMA-10 & EMA -20, indicating a strong negative trend for the stock.
Tata Elxsi Daily Chart
Tata Elxsi 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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