Sizzling Stocks: Prestige Estates Projects, Tata Motors :: Business Line

 

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Prestige Estates Projects (Rs 140.3)

The realty stock gained 12.2 per cent for the week, partially in anticipation of the second quarter results and, later, on account of good sales numbers announced for the quarter. Since taking support at the August 2013 low of Rs 105, the stock has been on a medium-term uptrend. Last week, it breached its 21- and 50-day moving averages and is now hovering well above them. The daily relative strength index and moving average convergence divergence indicator are now featuring in the positive territory, backing the stock’s uptrend. Short-term trend is also up.

There is an increase in daily volumes over the past six trading sessions.

Continuation of the stock's current uptrend will encounter resistance at Rs 160. Only a strong break above this level will pave way for an up-move to Rs 185 in the coming months. On the other hand, the stock has significant long-term support, pegged at Rs 120. A fall below this level will pull the stock down to Rs 100 and Rs 105 band in the medium-term. Important support below this band is at Rs 70.

Tata Motors (Rs 385.1)

Tata Motors zoomed 10 per cent accompanied by good volumes in the previous week. The stock has been on a long-term uptrend forming higher peaks and troughs since bottoming out at the early 2009 low of Rs 25. Medium as well as short-term trends are also up. The stock's recent rally emphatically breached the key resistance band between Rs 320 and Rs 330. Thereafter, it recorded a new high at Rs 389.5 on Friday. The stock is trading well above its 50- and 200-day moving averages.

There is an increase in daily volumes in the past four trading sessions.

The daily relative strength index is featuring in the bullish zone, backing the stock's short-term uptrend.

As long as the stock trades above its support zone between Rs 320 and Rs 330, its short-term trend remains positive and it can trend upwards to Rs 400. But a decisive fall below this support band will pave way for a downfall to Rs 300 and then to Rs 285 in the medium-term. Next important support is positioned at Rs 260.