Tata Elxsi – Trading Ideas

Tata Elxsi – Trading Ideas

Tata Elxsi is the one stock which

  • Returned 270% during last year while the Nifty Index was down by -3%
  • Regarded multi-bagger in 2013 by many value investors and lived upto the expectations by returning 10 X times of the investment in less than 2 years

Ok, everything looks amazing at the hindsight but what’s the future for this stock?

The stock reached all time high of 2320 during 2nd week of August’15 and fell down to 1692 rs in less than a week, thanks largely to Chinese market collapse

Post recovery, the stock once again reached the 2015 highs but failed to go past that number. The global sell-off which set-off once again in January brought down the shares level to 1692 and the levels were held firmly

The sell-off eased and took the stock once again to 2320 levels only to fall back to 1692 when the stock has been listed for trading in futures segment

In this process of trading between the same highs and lows, the stock has confirmed a rectangle consolidation pattern

In the short term, it very tough to breach either of these two levels – so one can enter the trade when the price comes down to 1692 and exit when the same reaches to 2300

Tata Elxsi Technical Chart

Currently, the stock is trading at 1855 rs

If one doesn’t have patience to wait for the price levels to come down to 1690 -1700 levels, they can still enter into a trade now with a stop loss at 1650 & TP at 2300 since

“The risk:reward ratio at the current price is still attractive at 1:2.25”

DISCLAIMER EquityBoss or anyone involved with EquityBoss will not accept any liability for any trading loss or damage as a result of reliance on the information contained within this post including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with investing the financial markets, it is one of the riskiest investment forms possible. EquityBoss would like to remind you that the data contained in this post is neither necessarily real-time nor accurate. All stock prices, Fundamental/ Valuation indicators, buy/sell Signal are indicative and not appropriate for trading purposes. EquityBoss doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
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