Stock Radar: Tata Consumer Products Showed a 40% Rally Within a Year

Tata Consumer Products, part of the FMCG sector, has shown us a significant profit-taking in recent weeks but remains up over 40% in the past year. Chart patterns indicate that the rally can be continue, could still have a great potential of buy side. Currently as of June 10 the stock is trading at 1,138.95 INR (approx), indicating of 0.29% change from previous day.

Also Read | United Cotfab IPO: Important details to know before applying

Performance Highlights

In the past year, the stock increased from Rs 792 on June 6, 2023, to Rs 1,139 on June 6, 2024, showed a significantly rise of 43%. It hit a record high of Rs 1,269 on March 7, 2024, but faced selling pressure, dropping below key moving averages before recovering. The stock found support above the 200-day Exponential Moving Average (EMA) and get back the 50-day Moving Average (DMA) with strong volumes.

Technical Indicators

The Supertrend indicator triggered a buy signal on June 5, 2024, which indicates a continued upward momentum. The stock is currently trading above critical short- and long-term moving averages, including the 5, 10, 30, 50, 100, and 200-DMA.

Technical Analysis

The technical noted that after peaking at Rs 1,269, the stock saw profit bookings and retraced to the 200-day EMA, finding support around Rs 1,050. A recent breakout above the falling trend line of the downward sloping channel could be an indication of a long positions build-up.

Also Read | RBI Monetary Policy Update: Repo Rate Unchanged at 6.5%, GDP Forecast 7.2%