TVS Motors after its sharp declines over the last few days has now headed into a stiff resistance zone. The strong volume lead rise is now seen halting at the higher levels as the resistance zones around 500-510 could witness supply. With a value resistance zone on weekly charts firmly laid out ahead the possibility of continued upward rise is now challenged.
Currently the rise has rallied 1/3 of the fallsince Jan 2018. Hence the current levels makes it be an ideal point to go contrarian. Further , the rally into Ichimoku clouds are highlighting that its time to book some profits.With MACD still continuing to languish in the negative zone one should refrain from getting overtly bullish on this counter at the moment and track for some shorting opportunities once it begins to react lower from current levels.
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Contrarian view worked out beautifully in TVS and the levels have worked to perfection and the resultant drop of close to 35 points in two days while the market has been riding higher does make it a very strong contra bet that I had recommended.One should now trail the stop towards 480 and look to cover around 452-455.