Tata Metaliks – Short Term Buy

Citigroup Technical Research has put a short term BUY recommendation on Tata Metalik with a target price of Rs 164. CMP Rs 147.

Tata Metalik has seen a bullish breakout from a “Triangle” pattern. Construction of triangle is T#1 Upper Boundary and T#2 Lower Boundary. Prices have closed above the breakout level (T#1) at 136; breakout was supported with rise in volume

The minimum price objective has been calculated using the “maximum depth” technique. Maximum depth within the triangle is distance between # 152 (P1) and # 124 (P2), 152-124=28. Adding 28 to the breakout level at 136 gives us a minimum price objective of 164 [28+136].

Short-term Buy (1B) with target price of 164 and stop loss price of 134 (on a daily closing basis)