Top buzzing stock: TVS Motor Company Limited

The stock of TVSMOTOR is bullish today and has surged over 4% in the initial hours of Tuesday’s trading session.

TVS Motor Company Limited is engaged in the manufacturing of motorcycles, scooters, mopeds, three-wheelers, parts and accessories. With a market capital of about Rs 32200 crore, it is one of the reputed names in the auto industry. The stock is in focus due to its breakout from its consolidation range.

The stock of TVSMOTOR is bullish today and has surged over 4% in the initial hours of Tuesday’s trading session. After nearly two weeks of consolidation, it has given a breakout above its upper level of the trading range. On the technical chart, it has formed a strong bullish candle with its open=low. Today’s price action was accompanied by above-average volume which indicates stronger trading activity in the stock. The volume was found to be greater than the 10-day, 30-day and 50-day average volume.

Along with its strong price structure, several technical indicators point towards the bullishness of the stock. The 14-period daily RSI (66.25) has crossed above its prior swing high. The price and RSI, both crossed above their respective swing highs in a sign of bullishness. The +DMI is well above the -DMI and indicates a strong strength of the stock. Interestingly, the On Balance Volume (OBV) is at its peak and shows good strength from the volume’s perspective. Also, the Elder Impulse System and KST maintain the buy signal.

The stock has performed exceptionally well in the last one month. During this period, it has gained about 12% and has outperformed most of its peers. The auto sector, in general, is in a bullish trend considering falling crude prices. Also, the monsoon is expected to be on time and thus, the sales are expected to increase in the coming quarters.

Considering the above points, the stock has the potential to test the level of Rs 725, and Rs 740 in short to medium term. It presents a good opportunity for swing trading and traders shouldn’t miss out on this trending stock.