TATA CONSUMER PRODUCTS LIMITED (TATACONSUM) Stock - Complete Technical Analysis - Dec 12, 2024

Tata Consumer Products Stock Analysis - Technical Insights, Support & Resistance Levels for Trader

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Tata Consumer Products Limited (TATACONSUM) has recently faced significant price volatility, trading at 921.25, almost 26.68% lower than its 52-week high of 1256.44. The stock is seeing a series of bearish signals from multiple indicators. The Relative Strength Index (RSI) is at 36.38, indicating that the stock could be oversold, with potential for a reversal in the short term. However, caution is advised, as the MACD shows negative momentum, and the Awesome Oscillator supports the bearish outlook.

Notably, a Bearish Engulfing pattern has emerged on the chart, adding to the likelihood of further downward pressure. The stock is currently trading below several key moving averages, including the 10, 20, and 50-day exponential moving averages, which are all sloping downward. This suggests that the stock is in a bearish phase in the medium-term outlook.

Support levels are identified at 901.73, where the stock recently found support, followed by 844.82. If the stock breaks through these levels, further downside could be seen. On the other hand, resistance levels are found near 942, the recent highs, and the next significant resistance is at 954.57, in line with the 20-day EMA.

Volatility has been high, with the Average True Range (ATR) showing large price swings in recent days, making the stock susceptible to rapid changes. For traders, short-term rallies could be capped around 942, and the stock needs to reclaim key moving averages to signal a reversal. If you're looking to trade, keeping an eye on these support and resistance levels will be essential for setting stop losses and profit-taking points.