TVS Motors has been experiencing a strong uptrend since the Covid-19 lows, with a remarkable surge of 945%.
The stock continues to exhibit the characteristics of a market leader.
The pattern analysis on the daily timeframe indicates that the price has been trading in a cup and handle pattern following a bullish breakout from an inverted head and shoulder pattern.
The former pattern strongly suggests a trend reversal, while the current pattern indicates potential signs of trend continuation.
The development of the cup handle pattern also indicates further accumulation by savvy investors to reinforce its primary trend continuation.
The stock demonstrates low volatility and improving EPS and relative strength compared to the market, and the demand from buyers is a positive sign.
The RSI across daily and higher timeframes is trading well above their medians, indicating momentum in the price.
Our recommendation is to buy TVS Motors at the current market price for a target of 2870 with a protective stop at 2359.