TATACONSUM – Cup & Handle Breakout | VCP Formation

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🔍 Technical Overview:

The stock has broken out of a classic Cup & Handle pattern.

Early bird entry was around ₹1143.45.

Currently trading near the 1-year ATH resistance at ₹1253.85.

A Volume Contraction Pattern (VCP) might be playing out, with visible contractions and tight price action in the handle.

Strong volume spikes seen during recent upmoves—indicating institutional interest.

📊 Price Levels:

📍 Entry Zone: ₹1143.45 – CMP

📍 Resistance to watch: ₹1253.85 – Breakout above this with volume can propel the stock higher.

📉 Stop Loss: ₹993.50 (on closing basis)

✅ Trading well above key DMAs (50, 100, and 200)

🌐 Market Context:

While Nifty is holding above its 50 & 200 DMA, the Nifty 500 index is still below the 200 DMA, indicating broader market caution.

Expect volatility and shakeouts in the near term.

Market breadth is improving but risk management remains crucial.

⚠️ Risk Note: The current setup is promising, but given the broader market's fragile structure, strict SL adherence and position sizing is key.

Penafian

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