Tata Group Stock Up by Over 10%, Can It Touch Rs 400?

Rallis India: A Robust Crop Care Portfolio

Rallis India, a subsidiary of Tata Chemicals, boasts a robust product portfolio offering comprehensive crop care solutions. Their range includes formulations for crop protection and nutrition, manufacturing and marketing a variety of agri-inputs like pesticides, fungicides, insecticides, seeds, and plant growth nutrients. Each product category covers a broad spectrum of crop-related requirements, ensuring a holistic approach to agriculture.

Recent Surge in Rallis India Share Price

On Monday, Rallis India’s share price surged over 10% due to a significant increase in trading volume. The total traded volume on NSE was the highest single-day volume registered by the stock in nearly three months, surpassing the 10 and 30-day average volumes. The volume soared more than four-fold compared to its 10-day average volume of 11 lakh shares.

Technical Breakout and Indicators

From a technical perspective, Rallis India has broken out of a two-year-long consolidation pattern with a depth of nearly 37%. The stock is currently trading above its 20, 50, and 200-day moving averages (DMA). Buyer demand is rated at A-, reflecting the recent demand and volume surge. 

The daily 14-period Relative Strength Index (RSI) has generated a positive signal, moving above its nine-period average, indicating a bullish bias. The RSI has reached its highest level since July 2023. Additionally, the daily Moving Average Convergence Divergence (MACD) is pointing northward, sustaining above its nine-period average, further validating the positive sentiment in the stock.

Long-Term Target

Based on the measured move target from the depth of the consolidation range, Rallis India’s stock is likely to achieve a target of Rs 400 in the long term. Given these factors, this Tata group stock should be on your watchlist.

The Legacy of Tata Chemicals

Rallis India is backed by Tata Chemicals Limited, a global company focusing on Living, Industry, and Farm Essentials. Tata Chemicals is the world’s second-largest producer of soda ash, with manufacturing facilities in Asia, Europe, Africa, and North America. The company’s industry essentials product range provides key ingredients to some of the world’s largest manufacturers of glass, detergents, and other industrial products.

Positive Outlook

The outlook for Rallis India remains positive, especially with optimism surrounding the upcoming monsoon season. Expectations for a strong crop protection season are high, with increased interest from the trade channel. This optimism further supports the potential growth and stability of Rallis India’s stock in the domestic market.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.