Tata Group stocks showed sharp reversal post the announcement of surprise removal of Mr. Mistry. There have been doubts raised on corporate governance on one of the most reputed group companies in India. During such scenario investors try to glue their eyes on the news and events to see what is happening around as they are anxious due to sudden reversal in Tata group stocks like Tata motors, Tata Steel, Tata Chemical, TCS etc.
Let us try to simply see from basic technical analysis perspective applied on charts on what are the crucial support and resistance levels for these stocks.
Tata Motors daily chart:
Tata Motors daily chart shows that in the recent down move prices have broken the important channel support along with strong momentum. 100 days Exponential moving average is violated now which suggests reversal in trend. 490 is the crucial level to watch on downside and 560 is the resistance.
Tata Steel daily chart:
As against to Tata Motors, Tata Steel has arrived at the crucial channel support. However the recent fall is sharp and fast in nature and hence it will be important to see how prices behave near this channel. Move below 380 will provide sign that medium term trend might be reversing on downside.
Tata Chemical daily chart:
Few days back Tata Chemical made high of 590 level with negative divergence on RSI. Post that prices have reversed sharply on downside and testing the channel support along with 50 days Exponential moving average. 500 is the important levels to watch on downside.
TCS daily chart:
TCS has been underperformer from last few years. As compared to other Tata Stocks, less damage was witnessed in TCS as prices have showed sideways to negative action in last few days. Medium term trend for this stock remains on downside with 2460 as resistance.
Ongoing issues in Tata Management can result in further volatility in days ahead however one should not trade based on news. Trading or investing in market requires objective analysis. We apply Elliott wave along with basic technical indicators to gauge the short, medium to long term trend on Nifty, Bank Nifty and stocks. To know the detailed analysis along with Elliott wave pattern on any of the above stocks along with trading strategy subscribe to “The Financial Waves Short Term Update” by visiting Pricing Page and selecting Equity research report.