Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on telegram
Share on email

Tata Global Technical Analysis #13: Sell | Target Rs 198 | Arijit Banerjee

OUR RECOMMENDATION

CMP#210.05
IdeaSELL
Sell Range215 – 210
Target198 – 195
StopLoss*220
Duration15 – 20 Trading Sessions
Potential Return^6 – 7%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
210.05SELL215 – 210198 – 19522015 – 20 Trading Sessions6 – 7%

# CMP on Jan 03, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 204.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Headquarters in Kolkata, Tata Global Beverages, earlier known as Tata Tea is a joint venture of James Finlay and Tata Tea and coffee, engaged in the trading, production and distribution of tea, coffee and water. The company owns a portfolio of brands in tea, coffee, and water such as Tetley, Tata tea, Vitax, Grand coffee, Eight O’clock, Chakra Gold, Kanan Devan and Himalayan and have the world’s second largest branded tea operations with a presence in 40 countries along with Tetley. In the quarter ended September 30, 2018, the company reported net profit dropped 6.37% QOQ to Rs 125.09 crore.

Stock Data
NSE CodeTATAGLOBAL
Sectoral IndexNifty FMCG
52W High328.75
52W Low195
Face Value1
Relative Performance_Tata Global Beverage vs Nifty FMCG Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • The share price witnessed a strong rally during 2017-2018, rallying from ₹ 120 to lifetime high of ₹ 328.75
  • After the lifetime high, the stock had been moving in lower top and lower bottom formation since last one year indicating negative bias.
  • Overall trend and the broader pattern are bearish and any reactive pullback might be temporary in nature.
Tata Global Beverage Weekly Chart
Tata Global Beverage Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • The stock price has slipped into sharp decline during this week and breakout below the trend line indicates a negative sign.
  • The price closed below 10 and 5 days Moving average crossover which considered bearish and helps to propel further downside movement.
Tata Global Beverage Daily Chart
Tata Global Beverage 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.

Enjoy this recommendation?
Share with your friends

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on telegram
Share on email

Your return could be much more

PROFITABLE!

access our premium recommendations

Equity Advice

3 Months / 6 Months / 1 Year
7990 for 3 months*
  • * referred calendar months here
    e.g. Jan 20, 2020 — April 20, 2020

  • average 5-6 trades/ month
  • indian stocks + major index
  • short to medium term trade
  • ...and other exclusive benefits
Ultra

Subscribe With Us

Get free Trading tips and Investment advice

We respect your privacy.

You cannot copy content of this page