Why This Tata Stock Should be in Your Trade List?

  • Stock Market Analysis
  • Editors Pick

About the company:

Part of the salt-to-software conglomerate Tata group, Tata Motors (NS: TAMO ) is a leading global automobile manufacturer.  The stock is trading at an 11.9% discount to its 52- week high level. The 52-week high and 52-week low range is Rs 361 – Rs 122.

Technical observations:

One-week time frame: (Chart 1)

On a weekly time frame, Tata Motors stock formed a Double Bottom pattern. After breaking out in the January 11 week this year, the share scaled a high of Rs 357. However, it couldn’t sustain and pulled back to take cushion at Rs 282 level. You should note that the scrip now faces the resistance of Rs 325. We expect to see an upward movement in the share supported by a volume spike. As soon as the stock breaks the resistance of Rs 325 and sustains the level, Tata Motors is likely to witness a further upward movement. Above 55 level of Relative Strength Index (or RSI) suggests positive momentum on the scrip. Long-term investors should enter at current levels and maintain the stop loss at Rs 268 on a weekly closing basis.
TML1
One day time frame: (Chart 2)

From the chart, it would help to see that Tata Motor stock has formed a Rounding Bottom formation on a daily time frame. Also, note that the scrip has taken good support on the 50-day EMA line and has bounced back to the current levels. TML share has broken a vital neckline of Rs 318 on September 23, 2021. It pulled back on the following day, i.e., September 24, but appears to have taken support at Rs 318 level. You should note that above-average volumes supported this week’s upward movement. RSI level of above 60 also signals positive momentum on the stock. Positional traders should enter if Tata Motors stock respects the support line of Rs 318 and moves back up. You should maintain the stop loss at Rs 293 on a daily closing basis.
TML2
Conclusion:

We expect the Tata Motors stock to maintain positive bias and move further upwards in the coming trading sessions. Short-term traders should take a position if the share sustains above 318 levels. They should keep a strict stop loss of Rs 310 on a daily closing basis.

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  • Pradyut Roy @Pradyut Roy
    As Jhunjhunwala is one of the big stake holder of this stock, so I doubt it will obey technical chart...if i am not wrong tomorrow it will fall and book loss for millions of retailers.
    Like 1
  • Nilima Mishra @Nilima Mishra
    what about Sbin sir please guide
    Like 0
  • Vikramsinh Mohite @Vikramsinh Mohite
    Your analysis is very educative for novice traders.
    Like 1
  • Kashish Khilnani @Kashish Khilnani
    Nice analysis
    Like 1
  • Lenovo Tablet @Lenovo Tablet
    Tata motors share is not only good in long term perspective , but on short time frame also it is worthy for a buy. Mid October tgt 360+.
    Like 2
  • sahadevan kada @sahadevan kada
    I daily go through your analysis and if confident tries to trade.thank you for your effort.
    Like 2
  • sunil pawar @sunil pawar
    सर हिंदी मे लिखाण हो तो बहोत अच्छा होगा thanks
    Like 4
  • Ganesh Chavan @Ganesh Chavan
    I most like your analysis.. I don't miss to read daily articles.. thanks a lot.
    Like 3
  • Tr Surendhar @Tr Surendhar
    Thank u
    Like 2
  • KUNAL SINGH @KUNAL SINGH
    Sir why do you look so serious & sad.
    Like 3
  • Sanjay kumar @Sanjay kumar
    thanks Sir for ur great efforts
    Like 4

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