Professional Documents
Culture Documents
Retail Research
Stock
Tata Motors
CMP
404.85
Recommended Action**
Buy between 385 and 405.2
mentum stocks
Targets
450/475
Stop Loss*
370
Time Horizon
3-8 Weeks
* Stoploss as per daily closing basis. **= Recommended to stagger buying rather than entering entirely at CMP
Current Observation:
Tata Motors has recently reversed its intermediate downtrend that saw the stock falling from a high of 606 to touch a low of 279. The
intermediate downtrend was reversed during the week ended 09th Oct 2015 when the stock crossed the previous intermediate highs of
359.
The intensity of the rise seen in the last few weeks (As evidenced by the large blue candles, higher than average volumes and the faster
retracement of the recent downtrend) suggests that the bulls are more dominant at the moment.
On the daily chart, the stock has broken out yesterday of a narrow range between the 376 and 397 levels. The stock was trading within
this range for the last two weeks.
Technical indicators are currently giving positive signals as the stock trades above the short term (13 day SMA) and medium term (50 day
SMA) moving averages. Momentum indicators like the 14-week RSI too are in rising mode and not yet overbought. The 14-week RSI is
also above its 9-day EMA, which is a positive signal for the stock.
The Relative Strength Comparative indicator is in rising mode, which implies that the stock is currently outperforming the Nifty index, and
is therefore likely to rise more than the index in the near term.
Given the positive technical set up, we believe the stock is on the verge of resuming the next leg of its underlying uptrend. Our entry
levels and targets have been mentioned above. Our first target corresponds to the previous intermediate high of 448.
RETAIL RESEARCH
RETAIL RESEARCH