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
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