Technical outlook on TAJ GVK

resr 5paisa Research Team 13th December 2022 - 04:04 pm
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TAJ GVK Hotels and Resorts Limited is engaged in the business of owning, operating and managing hotels, palaces and resorts with the brand name TAJ.

The stock jumped over 4% on Tuesday and it has recorded a fresh 52-week high. Moreover, the volume in the first half of the trading session has crossed 12 lakh mark, which is highest single-day volume since April 5.

It’s interesting to see that the stock is witnessing follow-through buying interest after it had recorded a breakout of the stage 1b consolidation pattern on the weekly chart. The length of the consolidation was about 22-week and the depth of the pattern is about 25%.

As the stock is trading at 52-week, it is above all the short and long-term moving averages. It is trading above 20, 50, 100 and 200-DMA and all of them are trending up. At the same time, there is a desired sequence.

The 14-period daily RSI is in super bullish territory and it is trading above its 9-period average. The MACD line is above the signal line for nearly the past one month. The histogram is indicating the momentum is picking up from last couple of days. The other momentum indicators are also suggesting the potential to move further on the upside.

The stock is in an uptrend, and the trend strength is extremely high. The Average Directional Index (ADX), which shows trend strength, is as high as 44.88 on a daily chart. Generally, above 25 levels is considered a strong trend.

In short, the stock is in a strong bullish trend and as long as the stock continues to trade above the level of Rs 165. Dips should be used to accumulate the stock as it has the potential to test levels of Rs 200 in the medium to long term.

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