Buy Tata Global Beverage, Maruti Suzuki India: GEPL Capital

Tata Global Beverage - Up move

After making high of 138.75 in Oct-2010, Tata Global (Previously know as Tata Tea) was in strong downtrend and witnessed the fall till the mark of 80. Last four months this counter is trading in range of 80 & 93 forming a double bottom type of pattern of daily charts. After a very long consolidation this counter is showing a sign of take off from the current price. It has given a close above its short term as well as long term moving averages that too with above average volumes which indicates a strong up move in coming time. In today’s price action, the stock was able to surpass its 13-DSMA & 50DSMA which indicates that smart money is flowing into this counter. Price pattern on daily as well as weekly charts are indicating that in coming time a strong up move is on cards. Momentum indicators on daily charts are suggesting a clear cut north side direction for prices. Keeping all this technical parameters in mind, we suggest this counter will be an ideal buy at current price as well as on decline with a stop loss placing at 83.5 for a target of 98.

Maruti Suzuki India - Buy on dips

Maruti has been in a strong downtrend since last two years from its all time high of 1738.The rally which has started from the low of 433 has topped out around 1738 after a consistent rise of almost 10months. Prices have retraced almost 61.8% retracement (Fibonacci retracement ratio) in last two years and have come down to new two years low of 900. Talking about weekly charts, on this time frame Maruti has very strong support area in the range of 875-920 (Gap area on weekly chart) which will prove to be an area of short term trend reversal which can push the price on the higher side. Keeping all this things in mind, Maruti seems to a contra buy on dips in this bearish scenario for a countertrend rally with a stop loss placing at 900 for a target of 1060.

FIIs holding more than 30% in Indian cos

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