Bull of the day: Stock that surged 32% in 3 days

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Bull of the day: Stock that surged 32% in 3 days

Tata Coffee touched a 52-week high of Rs 798 on the BSE. It touched an intraday high of Rs 798 and an intraday low of Rs 680. It closed up 13.02% or Rs 87.50 at Rs 759.40.

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Tata Coffee BSE | NSE 30/05/12 Are Mutual Funds betting on Tata Coffee? Other Stocks in this news Tata Global Beverage | Mcleod Russel (India) | Bombay Burmah Trading Corporation | Dhunseri Petrochem & Tea | Assam Company (India) | Jayshree Tea and Industries | CCL Products India | Gillanders Arbuthnot & Co | Harrisons Malyalam |

Tea and coffee stocks have continued their rally on reports that Arabica coffee futures have recorded a 14-year high on the Intercontinental Exchange on back of tight supplies in the coffee market.

On the back of this news, Tata Coffee touched a 52-week high of Rs 798 on the BSE today. It touched an intraday high of Rs 798 and an intraday low of Rs 680. It closed up 13.02% or Rs 87.50 at Rs 759.40. There were pending buy orders of 1,689 shares, with no sellers available. The total traded volumes were of 5,825,829 shares. Its market capitalisation stands at Rs 1,418.33 crore. The stock gained 32.02% in 3 days.

Arabica coffee futures have hit their highest level in 34 years, as producers have reportedly held back coffee beans in anticipation that prices may see a steep rise. Bad weather in Central America have led to Arabica coffee prices rallying close to 50% in the last six months.

Global supplies of coffee are likely to rise 10% on the back of optimism in output forecast from major coffee producers.

Mitesh Thacker, Technical Analyst, miteshthacker.com said that, "We have some a buy call on Mcleod Russel, I think it falls nearly in the same tea space. Tata Coffee in fact, the long term charts have already been very good. It went though a very big correction along with the market. My belief is that it will not only surpass its recent highs of Rs 750 but I think it will make a significantly higher top."

He further added, "Yesterday's movement has clearly given strong buy signals, pulled up all the indicators in a good upward trajectory. I think this stock should do well in the next few weeks. I think Rs 850 would be a very reasonable target that I would expect the stock to achieve."

"Similarly in McLeod Russel, we have been looking at targets of about Rs 240-245 to be tested shortly and probably Rs 255-260 over a slightly longer period of time. Tata Global also I think has done well. I would probably look for targets of Rs 103 over here. So I think this space should do well for the next few weeks."

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