As we head to the end of this trading week, CNBC-TV18 brings to you "Chart of the Day", where we will get you one chart from expert technical analysts daily and their take on the potential moves that the stock could see. Today's chart is from Sacchitanand Uttekar of Tradebulls Securities.
Today, we take a look at a Tata Group company, Tata Technologies.
A notable shift in market sentiment from bearish to bullish is reflected in the formation of an Inverse Head and Shoulders pattern on Tata Technologies’ weekly chart.
This structure captures a behavioural transition, where sellers attempted to extend the downtrend but failed to breach the prior low, resulting in the formation of a higher right shoulder, a classic early sign of reversal.
The breakout above the neckline at ₹730 marks a resurgence in buyer confidence, potentially setting the stage for a fresh uptrend.
The pattern’s projected price target stands near ₹860, offering a favourable risk-reward setup for positional traders.
The 5- and 20-week exponential moving averages (WEMA) are converging towards a bullish crossover, suggesting that directional momentum could build up in the coming weeks.
We recommend accumulating the stock on dips towards ₹750, with a weekly closing-based stop loss at ₹692. A successful retest of the neckline may serve as a launchpad for further upside, attracting renewed buying interest.
Shares of Tata Technologies ended at the highs of the day on Thursday at ₹773, registering gains of 2%. The stock has risen 18% so far in the last one month.
Also Read: Chart Of The Day: A breakout in this real estate stock can take it past levels of ₹800
Tata Technologies In Focus
Today, we take a look at a Tata Group company, Tata Technologies.
A notable shift in market sentiment from bearish to bullish is reflected in the formation of an Inverse Head and Shoulders pattern on Tata Technologies’ weekly chart.
Here's What The Charts Say
This structure captures a behavioural transition, where sellers attempted to extend the downtrend but failed to breach the prior low, resulting in the formation of a higher right shoulder, a classic early sign of reversal.
The breakout above the neckline at ₹730 marks a resurgence in buyer confidence, potentially setting the stage for a fresh uptrend.
The pattern’s projected price target stands near ₹860, offering a favourable risk-reward setup for positional traders.
What's The Path Ahead?
The 5- and 20-week exponential moving averages (WEMA) are converging towards a bullish crossover, suggesting that directional momentum could build up in the coming weeks.
We recommend accumulating the stock on dips towards ₹750, with a weekly closing-based stop loss at ₹692. A successful retest of the neckline may serve as a launchpad for further upside, attracting renewed buying interest.
Shares of Tata Technologies ended at the highs of the day on Thursday at ₹773, registering gains of 2%. The stock has risen 18% so far in the last one month.
Also Read: Chart Of The Day: A breakout in this real estate stock can take it past levels of ₹800
Note To Readers
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not those of the website or its management. CNBCTV18.com advises users to check with certified experts before making any investment decisions.
(Edited by : Juviraj Anchil)
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