These Two Tata Group Stocks Have Shown Relative Strength Amid Market Sell-Off

March 22 2021

Tata Steel Bsl 

Tata Steel Bsl stock has broken out of a 6-week, 18% deep Consolidation 3-weeks ago. However, the stock is still offering investors an opportunity to get on board as the current price is only 3% away from the ideal buy price of INR 46.

Last week, the stock closed in green, but the volume remained below average. It was up 1.3% on a -36% lower volume than the 10-week average. It will be interesting to see how the stock behaves in the coming week. You would want to see the price volume momentum to pick up in the coming trading sessions.

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 7.1% away from the 10-week moving average.

Tata Steel Bsl has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 85. In the last twelve months, the stock has rallied over 156.8% as compared to 68.9% for the Nifty500.

The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Tata Steel Bsl can maintain this outperformance, it could make sense as a CANSLIM trade.

Tata Steel Bsl stock has a strong institutional support. The Accumulation/Distribution Rating of 'A+' represents heavy institutional buying over the past 13 weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.

The current price of Tata Steel Bsl is -7% off from its 52-week high price and 210% above its 52-week low price. The stock belongs to the industry group of Steel-Producers, which is exhibiting excellent strength in the current market environment. The current industry group rank is 34.

The stock appears on our idea lists: Trend Template - 1 Month.

Tata Elxsi Ltd. 

Tata Elxsi Ltd. stock is worth watching as the stock is forming a 6-week, 17% deep Consolidation Base. The current price is only 9% away from its ideal buy price of INR 3050. Aggressive investors could use any tight area breakout inside the base as an opportunity to initiate a small position. A conservative approach may be to add the stock to your watchlist so that you are ready to pounce if it breaks out to the traditional entry point.

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 2.9% away from the 10-week moving average.

Tata Elxsi Ltd. has been a roaring outperformer as compared to the broader market. It has a top-notch Relative Strength Rating of 94. In the last twelve months, the stock has soared over 361.9% as compared to 68.9% for the Nifty500.

The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Tata Elxsi Ltd. can maintain this outperformance, it could make sense as a CANSLIM trade.

Another key part of the jigsaw is institutional sponsorship. Tata Elxsi Ltd. has an Accumulation/Distribution Rating of 'A+'. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

On the earnings front, Tata Elxsi Ltd. has an excellent EPS Rank of 94, which indicates consistency in earnings. The earnings and sales for the stock have grown by 8% and 8%, respectively over the past three years. Its 3-years earnings stability is 9, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 16% and 10%, respectively. The 5-years earnings stability is 9. The return on equity for the last reported year is 23%.

The stock belongs to the industry group of Computer Sftwr-Desktop. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 81. The current price of Tata Elxsi Ltd. is -9% off from its 52-week high price and 453% above its 52-week low price.

The stock appears on our idea lists: Trend Template - 5 MonthsLong Term Leaders.

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