We recommend a Buy in the stock of Tata Global Beverages from a long-term horizon. It is apparent from the charts of the stock that after marking a new high at Rs 181 in mid-November 2012, the stock reversed direction. This reversal was triggered by negative divergence in weekly relative strength index and daily moving average convergence divergence indicator. Since then, the stock has been in a short-term downtrend.
Our short-term outlook for the stock is bearish. We expect its decline to prolong and reach our price target of Rs 115 or Rs 124 in next 2 weeks . After hitting a 52 week high of Rs.181 the stock has been declining which is now near to the 6 months low of 127.
Smart Investors with long-term perspective can consider buying the stock with stop-loss at Rs 100 levels.
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