Technical Picks to Keep an Eye On: Tata Consumer Products and Birla Corp

Tata Consumer Products and Birla Corp are identified as upside potential stocks based on technical analysis. Both stocks have displayed promising structures and technical setups, including price volume contraction and the potential to bounce back and breakout. Currently trading at Rs 1,153.40 and Rs 1,528.60 respectively, their price aligns with positive signals from technical indicators like RSI and ADX, suggesting a breakout scenario likely in the coming time.

Tata Consumer Products Ltd 

The daily chart of Tata Consumer Products Ltd

On the daily chart, Tata Consumer Products is presently showing a promising picture; the stock price is moving up after taking support. The stock price may resume its strong momentum-up in the coming trading sessions if it manages to sustain above the 50-day EMA as plotted on the chart, with the support of decent volume compared to the current volume. Volumes are dry right now and likely to rise soon.

Those considering a possible trade-in Tata Consumer Products might purchase the stock at the present price with a stop loss of Rs 1,100 on a closing basis and aim to capitalize above Rs 1,200 and its 52-week high.

The stock price is currently trading around its 50-day EMA, suggesting it is likely about to turn short-term bullish once more. The stock appears quite neutral when one looks at the Relative Strength Index, which is now trading at 52.78. The ADX of 20 indicates the present state of price momentum, which is moving with low momentum.

In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 1,080. The minor upper resistance is the 52-week high, and if the stock closes above the 52-week high consecutively, then it may consistently trade above current levels.

Tata Consumer Products Ltd. is a holding company, which engages in the trading, production, and distribution of consumer products.

Birla Corp Ltd 

The daily chart of Birla Corp Ltd

Birla Corp’s current performance is indicated by a favorable technical setup. The company’s shares are now trading at Rs 1,528.60 and may continue the uptrend from the current level. The stock price is currently trading slightly above the 50-day EMA.

Those interested in possible trade-in Birla Corp could purchase the stock at the present price, setting a stop loss below the 50-day EMA at Rs 1,470, and aim for a target price higher than the stock’s 52-week high.

The stock is trading above its all-important moving averages, and it is expected to find support near Rs 1,360. The Relative Strength Index is trading near neutral levels at 53.07. This implies there may be potential for an increase in stock price strength. The ADX, now around 20, shows low momentum and directional strength.

The level at Rs 1,950 serves as a crucial indicator for corrective movement, and the overall market structure favors traders if the stock crosses and trades above the 52-week high.

Birla Corp. Ltd. engages in the manufacture of cement. It operates through the following segments: Cement, Jute, and Others.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.