TVS Motor, which is in a short-term uptrend, zoomed 13 per cent with good volumes in the previous week. After hitting a 52 -week low of Rs 31.9 on June 4, the stock changed its direction triggered by positive divergence in daily moving average convergence divergence indicator and weekly relative strength index as well as price rate of change. Moreover, the stock has significant long-term support in the zone between Rs 30 and Rs 33. The stock is trading well above its 21 and 50-day moving averages.
We notice that there has been an increase in weekly volumes over the past three weeks. The daily RSI is hovering in the bullish zone and weekly RSI is moving higher in the neutral region.
The daily MACD is climbing higher in the positive terrain implying upward momentum. Though the stock’s intermediateterm
trend is still down, its short-term uptrend looks promising. Both daily and weekly price rate of change indicators are
hovering in the positive terrain implying buying interest. We are bullish on the stock from a medium-term perspective. We believe that the stock has the potential to trend higher and reach our price target of Rs 50, with a minor pause around Rs 45. Investors with medium-term perspective can consider buying the stock with stop-loss at 36.
(This recommendation is based on technical analysis. There is a risk of loss in trading.)
