Technical Picks to Keep an Eye on Tata Steel & Torrent Power

Based on technical analysis, Tata Steel & Torrent Power are identified as upside potential stocks. 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 175.30 and Rs 1,505.05 respectively, their price aligns with positive signals from technical indicators like RSI and ADX, suggesting a likely breakout scenario.

Tata Steel Ltd

The daily chart of Tata Steel Ltd

On the daily chart, Tata Steel Ltd is presently showing a promising picture; the stock price is trading near 50-day EMA. The stock price may resume its strong momentum-up in the coming trading sessions if it manages to cross and close above the range marked on the chart, with the support of decent volume.

Those considering a possible trade-in Tata Steel might purchase the stock at the current price with a precautionary level of 50-day EMA on a closing basis and aim to capitalise above the 52-week high.

The stock price is currently trading above its 50-day EMA, suggesting it is likely about to turn short-term bullish once more after the signs of breakout. The stock appears neutral when one looks at the Relative Strength Index, which is now trading at 50. The ADX of 13 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 a 50-day EMA. The minor upper resistance is 52-week high and if the stock closes above 52-week high level, then it may consistently trade above current levels.

Tata Steel Ltd. is a holding company, which engages in the manufacture of iron and steel products.

Torrent Power Ltd

The daily chart of Torrent Power Ltd

Torrent Power Ltd’s current performance is indicated by a favorable technical setup. The company’s shares are now trading at Rs 1,505.05 and may start the uptrend from the current levels as it has given a breakout of the consolidation. The stock price is currently trading above all the important moving averages and bouncing from the 50-day EMA.

Those interested in possible trade in Torrent Power Ltd could purchase the stock at the present price, setting a stop loss below the 50-day EMA, and aim for a target price around a 52-week high.

The stock is trading above its all-important moving averages, and it is expected to find support near its 50-day EMA. The Relative Strength Index is trading near neutral levels at 50. This implies there may be potential for an increase in stock price strength. The ADX, now around 16, shows low momentum and directional strength.

The level at the 50-day EMA serves as a crucial indicator for corrective movement, and the overall market structure favors traders if the stock sustains the current level and trades above it.

Torrent Power Ltd. engages in the business of power generation, transmission, and distribution of electricity.

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.