TATACONSUM - SHORT?
One has to be brave to call a Short in this stock. It's a market favourite plus part of Nifty 50. Still looking at the chart and options data, I'm wondering if the bearish H&S pattern will actually play out, or not? But to me it looks like sell on rise until it closes above 1125.
At the time of writing 2:40pm on Fri 03May'24: CMP 1097
Highest calls are at 1200, then at 1150 and most are holding still!
Highest puts are at 1100, then at 1050 and most are holding these as well!
So the jury is still out on who will win but it's tilting towards call writers so bearish...
The duration of Right shoulder is almost equal to that of the Left shoulder. That signifies that the stock is ready to zoom down 'any day now!' Notice that the neckline is around 1080. The height formed from neckline to the peak is approx. 186 points. That tell us that if TATACONSUM breaks below 1080 'convincingly' then eventual target could be 896. But I think that's a bit of a stretch as of now.
There are many supporting indicators on different timeframes too but I'll leave that to you guys to analyse. :))
Sticking my neck out now:
Once it closes well below 1080, first target would be 1050.
If the market is also pretty bearish (anything can happen), then the next target would be 980 where it touches the channel top formed before.
Beware that this stock has a tendency to jump or dip fast. Let's see how it all pans out...
Disclaimer: I am not a SEBI certified anything :) so this is for chart enthusiasts like me for educational purposes only.
At the time of writing 2:40pm on Fri 03May'24: CMP 1097
Highest calls are at 1200, then at 1150 and most are holding still!
Highest puts are at 1100, then at 1050 and most are holding these as well!
So the jury is still out on who will win but it's tilting towards call writers so bearish...
The duration of Right shoulder is almost equal to that of the Left shoulder. That signifies that the stock is ready to zoom down 'any day now!' Notice that the neckline is around 1080. The height formed from neckline to the peak is approx. 186 points. That tell us that if TATACONSUM breaks below 1080 'convincingly' then eventual target could be 896. But I think that's a bit of a stretch as of now.
There are many supporting indicators on different timeframes too but I'll leave that to you guys to analyse. :))
Sticking my neck out now:
Once it closes well below 1080, first target would be 1050.
If the market is also pretty bearish (anything can happen), then the next target would be 980 where it touches the channel top formed before.
Beware that this stock has a tendency to jump or dip fast. Let's see how it all pans out...
Disclaimer: I am not a SEBI certified anything :) so this is for chart enthusiasts like me for educational purposes only.
Note
Yesterday the stock hit 1121.55 below our SL and corrected. So our view above still holds... We have to wait for the stock to either clear above 1125 or go below 1180.Trade active
Trade has triggered. SL according to your conviction and risk management.Trade active
Market always knows best. All of a sudden, Indian spices have come under global scrutiny for contamination. The article below indicates the impact on shares like Tataconsum...in.tradingview.com/news/reuters.com,2024:newsml_L1N3H50IF:0-india-widens-spices-probe-amid-contamination-concerns/
Trade remains active...
Trade active
It is respecting 3/1 Gann Fan line so far. Today's close should break this line. 24th May is ex-date for Div of Rs. 7.75 so unless SL is broken we have to hold the trade till then. Like I said, calling short in Tataconsum is a risky thing to do... :)
Trade active
15th MAY 2024, 3:17pm - SHARE HITS 1056First target almost reached today at 3:17pm when traders swept the market with 93.3K shares to hit 1056 and bounced back to 1069 in less than ONE MINUTE similar to what they did when this share hit 1067 levels a few sessions ago. That time they needed only 17.5K shares to sweep it. Looks like "powers that be" want to remove shorts from the system. But TATACONSUM has closed at 1068.9 today. That's decidedly bearish. Now, if we are lucky, we will hit 2nd target at 980 in the coming days. I think that will depend on the spice news impact. Enjoy!
Note
22nd MAY 2024, 10:30am - SHARE HOVERS AROUND 1100So the share managed to pull back to 1100 line but still hasn't hit SL at 1125. That says we stay the course for now with Ex-Div day 24th May coming up. But certainly the situation has become less favourable to bears.
Trade closed manually
Spices report said nothing untoward found. At the beginning of trading today the share hit 1130 lvls. Since yesterday I heard calls from tv for targets of 1200 in the share. FMCG sector is poised to do well. Anyway, I found the journey of the last few weeks fascinating in TATACONSUM. Hope you did too.Order cancelled
Just an update...
After hitting our stoploss by just 6 points, TATACONSUM did a remarkable turnaround and today is again at target 1 near 1050 :)) So maybe it still respects H&S pattern as noted above. Hope it hits target 2 where we can buy for LT.
Namaste Market
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