Tata Consumer Products had a robust run on June 14 despite consolidation in the equity markets, rising over 5 percent to move closer to its record high of September 2021.
On the technical charts, the share has decisively broken out of a long downward sloping resistance trendline adjoining the highs of September 7, 2021, and September 14, 2022. Also, there was a breakout of the horizontal resistance trendline adjoining multiple touchpoints.
Since the record high in September 2021, the stock entered a consolidation zone. After the second-highest peak of September 14, 2022, the stock fell 20 percent to hit bottom in March 2023 and since then it has been making a formation of higher highs and higher lows, gaining 26 percent till now.
Tata Consumer Products has had a golden crossover with the 50-day EMA (exponential moving average) having crossed the 200-day EMA and staying above all key moving averages since the last week of May.
The share traded at Rs 861.50 on the National Stock Exchange, up 5.07 percent at 14:53 hours IST, with significantly higher volumes.
If the stock surpasses its record high of Rs 889, it is expected to cross the Rs 1,000 mark, with support at Rs 800-850 levels.
"The stock has witnessed an impressive rally since the lows of the COVID pandemic in March 2020,” said Viraj Vyas, CMT, technical & derivatives analyst - institutional equity, at Ashika Stock Broking. “In recent months, the stock has experienced a rally from around Rs 700 to approximately Rs 860."
He said the immediate resistance level is expected at Rs 875-880, and if the stock stays above this level, it could indicate a further bullish momentum. The stock's next targets are projected at Rs 1,050-1,020 levels, with critical support at Rs 800, he said.
Vidnyan Sawant, AVP - technical research at GEPL Capital, said the recent breakout from the descending channel suggests the beginning of an upward trend, with potential targets reaching higher levels around Rs 960.
In case of a pullback, the level of Rs 850 could provide strong support for the stock, he said.
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