TATA CONSUMER PRODUCTS broke triangle pattern

6 wrz 2022

TATACONSUM a less known company with well known products like TATA salt, TATA tea, Tetley green tea and Starbucks and much more, have finally broken out of its triangle consolidation after 6 failed attempts in the past one year.

Fundamentally & financially strong with consistent group in revenue & profits, low dept to assets ratio, consistent dividend yield, reasonable PE ratio, consistent FII holding, increasing market share seems like a good scrip to have in our portfolio.

Price wise current price 837.45 is just 5.8% below its all time high of 889, hence this might be a costly entry and the breakout is not with very high momentum. Also the DIIs consistently reducing their state from March 2021.

However, from its pros perspective, even in short term if this scrip corrects a bit, averaging out will not be a bad option, as in long term it seems to be healthy.

Entry : 820 to 840
Target : Trailing stop loss with partial profits booking method at every 5% up movement
Exit : SL1 800 (resistance break), SL2 780 (support break), long term holders can average instead of exit

Key note : Always follow proper risk management to avoid losing capital from false breakouts as this is common.
Caution : This is a knowledge sharing analysis, not a call.