This share of Tata Group jumped seven percent, do you have it?

Mumbai: Shares of Tata Elxsi Ltd rose more than seven per cent in early trade today. Along with this, this company has outperformed most of the companies in its sector. After opening fast, it increased further. It reached the highest level of the day at Rs 7477.35. Its all-time high is Rs 9420 but since then it has declined by about 30 per cent. However, in the last two trading sessions, it has got strong support at the zone of Rs 6400-6800. Investors have shown good interest at this level. It has gained 16% in three sessions from its previous swing low of Rs 6432. Its volume has been above average along with the price rally, indicating heavy investor interest and reversal.

Technical parameters are also indicating an improvement in the performance of this stroke. Its daily RSI for 14 days has gone above 45 percent. Interestingly, its OBV has also reached a peak which is showing strong strength in terms of volumes. Its MACD line and Signal line are converging and could give a bullish crossover in the coming days. The stock is trading above the 50-DMA and 200-DMA. However, it is about four per cent below the 20-DMA.

The stock has outperformed the broader index and its sector in recent times. So far this year, the stock has given a return of around 20 per cent. Price action and technical parameters are indicating further upside in the coming days. If it crosses the 20-DMA level at Rs 7667, then it will turn bullish and then it can go towards the level of Rs 8000. Traders can keep an eye on this stock.

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