Thursday, September 27, 2018

Tata Motors: Amazing Diametric Neo pattern in work!

Many analysts tried to catch a low of this stock but we have been bearish from many months. This stock has failed to show any contribution during the rally of Nifty 50 index. It has been moving in lacklustre manner since 2017.

Using techniques like Elliott waves, Neo wave, Moving averages, Bar techniques, we have been able to capture the move from 250 levels. From past 7 consecutive trading sessions stock has failed to close in green.

Tata Motors Hourly chart: Anticipated as on 19th September 2018



Tata Motors Hourly chart: Happened as on 27th September 2018


(Below is the research taken form daily equity report published on 19th of September, 2018)

Wave analysis:

In the previous session Tata Motors had a minor gap down opening post which it continued to trade lower making a low near 250 levels. The stock slipped by nearly 3.50% and was among the top losers in the Index. While there has been speculation that the move came out after Tata Motors owned JLR confirmed a cut in its production while if we look at the other side the stock had been in a downtrend for many months now and it is no surprise for us.
  
A shown on hourly chart, prices are showing an overlapping move and are forming a Diametric pattern; post completing wave f near 280 levels currently we are seeing the last leg i.e. wave g ongoing which is expected to take the prices further down. At this juncture any pullback can be used as a shorting opportunity…….

In short, trend for Tata Motor looks negative. It is wise to use any pullback towards 255 as a shorting opportunity for capturing a move towards 240 or lower levels…

Happened: Prices of Tata Motors have moved precisely as expected, making a low 226.55 levels. This stock has failed to show any sign of positive reversal. It is better to use shorting strategy using proper resistance levels to avoid the noise of volatile move.

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