Tata Tea - Negative Breakout

Tata Tea finally could not hold any longer. It has tried holding its support line for more than a month now but finally it broke : "But broke the support line" . 740-730 was a crucial price for the stock to maintain. However with the current price at Rs. 709, the stock looks to have broken the support.

• MACD is still unclear for the signal to give on the stock but looks like the signal would be clear in the next few days.
  
• RSI though is on the oversold side. This could worsen further, if the stocks still has some pace in the downfall.
• Accumulation Distribution chart is similar to Dr. Reddys, mentioned yesterday. Moving down across time.

In terms of the next support, the stock will have to break Rs. 690-680. Stock will need solid buying on the upside if it has to reach its current upper target of Rs. 730 as the first target. Though, the stock looks exciting to 'buy' given the upper and downside targets, I would like to wait a few more days as the current underlying Nifty is showing some volatility that is like a correction.