Tata Motors – How far will it fall? Is it a value buy?

Tata Motors had been a major underperformer within the auto space. With each swing of fall investors have been thinking this is it but only to see it fall further! So, even if you think it is a value buy at every fall you are only losing your capital.

It is therefore best to await and get positive price confirmation before committing your hard earned capital to a stock like this. A similar story was witnessed even in pharma stocks when at each fall everyone simply kept on losing money. However, we published our bullish outlook on Pharma only recently after seeing faster retracement above the last falling segment and when the important resistance levels were taken out. This makes a lot of sense as you are getting a value stock but with a strong technical confirmation.

Similar strategy should be adopted even for Tata Motors, Now look at the below chart which is published in our daily equity research report – The Financial waves short term update

Tata Motors Daily chart:

Tata Motors Hourly chart:

Wave analysis:

Tata Motors a leading global automobile manufacturing company has shown a massive downfall by 33% since the start of the year 2018. From the high made near 450 levels the stock has failed to show any signs of positive retracement and currently the stock is trading near its 52 week low.

As shown on daily chart, prices are moving in downward sloping channel. Prices are moving in the form of Complex correction pattern and the last set of correction in the form of wave z is ongoing. If carefully look at the RSI indicator we can see that it is moving in a range also the overbought zone for RSI has now changed to 60 from where prices recently witnessed a down move.

A shown on hourly chart, prices are forming Bow- Tie Diametric pattern in which contraction is seen in initial legs and currently expansion is ongoing.  As per wave prospective, wave ……….. is completed on upside near …… levels and currently wave ………. is ongoing on downside.

In short, trend for Tata Motor remains negative. Break below …….. levels can take the prices southward towards …….. levels or lower levels. Avoid creating any long positions unless we see close above ………. where wave ……… completed. This stock has drastically failed to live up to investor’s expectations and it is best to avoid catching a low here.

The above clearly shows the strategy you can follow to invest in so called value buying. It is best to let stocks run its course and when it is done we will know by seeing a faster retracement above the last falling segment.

So what are the key levels on stocks like Tata Motors for value buying?

Charting tool: Plot your chart on Tata Motors

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Tatamotors serious selloff! How far will it fall?

Tatamotors had been a major laggard and this stock has continued to capitulate for many months now. Anyone who tried catching a fall under the impression how far will it go is already in losses!

During such kind of medium term negative trend the best strategy is to use any pullback as shorting opportunity rather than trying to catch a low. SBI, Sunpharma, BHEL, Relcap and many more are classic examples that will make you rethink – How far will it fall!!!

Below is the chart of Tatamotors picked up from our daily research report – The Financial Waves short term update

Tata Motors Daily chart:

Below is part of the research picked up from the daily morning research report

Elliott Wave analysis:

In our earlier update for Tata Motors dated 27th April 2018 we mentioned that, “Trend for Tata Motors is bearish as of now. A move below 325 is expected to take prices towards 310 levels as long as 342 is intact on the upside.” BANG ON! Tata Motors made an intraday low near 305 and closed near 310 in yesterday’s trading session.

As shown in the daily chart of Tata Motors, prices continued moving southwards within the downward sloping red channel. The prices maintained its downward trend with no positive attempt of an up move. As per wave perspective, wave y (blue) of third standard correction is ongoing. This keeps the bias for Tata Motors negative. Also this is the worst performing stock within the automobile space and interestingly it is trading at 52 week’s low. So avoid catching a falling knife as any pullback will be short lived.

As shown in the hourly chart (shown in actual research report), wave iii of c is ongoing. The prices can be seen approaching the channel’s support line near …… levels. As long as the 30 period moving average near ……. is protected the trend will continue to remain bearish. A pullback towards 315 levels should be used as shorting opportunity for a target of ….. or lower.

Tata motors made a high of 315.65 in today’s session and reversed back from there exactly as expected. It is best to now trail stop towards the cost level near 315.65 so that position becomes risk free and keep riding the trend for the mentioned target in the daily research report.

“The Financial Waves short term update” is a daily research report published in the morning with trade setup on Nifty, stocks having applied Elliott wave, Time cycles and various technical analysis methods. Subscribe NOW under summer offer and we will set you up for complimentary reports as well. Here is the best deal that you can get – Intraday / Positional advisory with free research reports at discounts upto 50%. See the various offers below:

Tata Motors crash – Head & Shoulder pattern with Elliott waves!

Tata Motors crashed in today’s trading session falling by more than 7% post its result announcement. It is thrilling to see prices behaving exactly as per Elliott wave patterns!

 

The sharp selloff in Tata motors stock today can be attributed to the extremely poor result announced that showed decline in profits by nearly 96% year on year basis. Such sharp fall in profits which was unexpected will obviously result into some serious weakness in stock prices. 

But for a trader what matters most is to see if there was a trade setup that could have helped to capitalize this serious capitulation even before the news or event.

Following was the stock tip on Tata motors which we gave to Equity calls clients on 9^th February –      

TATA MOTORS FUT SELL AT CMP 508.60 SL 520 TGT 490

TATA MOTORS FUT SELL CALL GIVEN BOOK PART TP AT 501.40 AND TRAIL STOP TO COST

TATA MOTORS FUT SELL CALL GIVEN TARGET ACHIEVED BOOK PROFIT AND EXIT AT CMP 488

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 The above call was given based on in-depth research using Technical analysis – Elliott wave and channels.

Now look at the below chart of Tata motors shown today morning equity research report – The Financial Waves short term update

Tata Motors 60 mins chart: Anticipated today morning before equity markets opened.

Tata Motors 60 mins chart – Happened today

Elliott Wave analysis:

Below is the research published today morning before equity markets opened that showed detailed pattern analysis and Elliott wave counts on Tata Motors

The daily chart shows (shown in actual research report) that from October 2016 intermediate wave (Y) is ongoing in form of Flat correction pattern. Currently minor wave c of the same is ongoing which has managed to breach the moving average line thereby keeping the daily bias negative. 

As shown in 60 min chart, post breaching the blue channel support and the Head & Shoulder neckline prices are struggling to generate momentum on either side. As per wave perspective minor wave c of flat correction pattern is ongoing but we can see that since last 2 sessions the previous low is intact which is concerning. Now from near term perspective move below 499 will resume the downtrend for the target of 485 or lower. 

In short, for Tata Motors outlook will be negative as far as prices remain below the neckline. On downside move below the previous low should infuse selling pressure and push prices towards 485 levels.

The above research only highlights the fact that using Advanced concepts of Technical analysis – Elliott waves we are exploiting the probability to be in our favor. 

Want to learn these techniques? Attend the most advanced training on Technical analysis – Neo wave, Elliott wave and Time cycles scheduled on 18^th and 19^th March 2017. News or events does not always help in taking a correct trade but it is best to look at the ongoing patterns and have a trading strategy in place even before the news or results are announced. Learn More

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Stock tips on Tata group stocks – Tata Steel, Tata Motors, Tata Chemical, TCS!

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.

Fractal Nature: SBI and TataMotors: Can you identify the difference?

Fractal Nature: Can you identify the difference between the below two stocks SBI and Tata Motors belonging to the separate sectors and industry?

The below research is picked up from monthly research report – The Financial Waves Monthly update published on 6^th October 2016.

The below charts only highlights to the fact that how highly correlated can stocks become during the corrections. Below charts are of two different stocks – SBI (blue) and Tata Motors (red). It is indeed amazing to see such fractal nature irrespective of their fundamentals and time frame.

SBI belongs to the Banking industry and Tata Motors within the auto space. Both of them have very different business model but at times they exhibit extremely high correlation. Look at the below chart again and at a glance you will think both the charts are of same stock. Since 29^th August 2016 we can see that SBI and Tata Motors have been moving in lock step fashion. Infact the percentage change on daily basis had been more or less similar.

Figure 4: SBI and Tata Motors hourly chart tomorrow (chart as on 5^th October 2016)

Case in point is above charts clearly reflects that diversification might not necessarily help. The events of 29^th September also resulted into sharp decline and similar reversals in these stocks. During major corrections the correlation increases across all the stocks and not only a few. Think again if you are really diversifying by using multiple stocks in portfolio!

……………… This is a very different way in which technical analysis can be looked upon and trust me these are subtle but important changes.

Fractal nature also forms the building block of Elliott wave analysis. Elliott wave helps us to understand the maturity of trend and the probable scenarios. During middle of complex correction it is important to rely on other basic technical analysis method but once the pattern is near completion Elliott wave provides very high probable trade setups. So combining both basic methods with Elliott wave becomes extremely important and when both are in sync one should not think twice to pull the trigger!

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TATA MOTORS: JLR sales worry or Elliott wave counts?

TATA MOTORS: JLR sales worry or Elliott wave counts?

By Waves Strategy Advisors, For more information visit www.wavesstrategy.com To subscribe to daily equity research “The Financial Waves” write tohelpdesk@wavesstrategy.com or call on +91 9920422202 / +91 22 28831358

Tata Motors fell hard on 21st March 2013, but not for the reasons you probably have heard!

(Reuters) - Shares in Tata Motors end down 4.22 percent after falling as much as 5.6 percent on worries that China's new stringent fuel economy standard would adversely impact the auto maker's Jaguar Land Rover Ltd (JLR) unit.

Above news we read on 21^st March 2013 after equity market closed, giving the reason for a sharp fall in the stock. However, one day before the fall we have covered this stock in our daily equity report (The Financial waves) and predicted the fall with the help of advanced technical analysis i.e. Elliott wave counts, Fibonacci retracements along with momentum indicator and crucial levels. Below is the chart picked up from the equity daily report (The Financial Waves) which shows sharp fall in last two days (marked by eclipse) and currently quoting near day’s low of 266.80.

Tata Motors 120 mins chart:

Anticipated on 20^th March 2013:

Happened:

Waves Analysis:

Following is what we wrote before the news and positioned our readers on the short side -

Above stock is weekly chart of Tata motors, since last six trading sessions prices are consolidating between the narrow range of 280-310 levels. Yesterday, prices breached the crucial level of 280 and made an intraday low of 278.50. Momentum indicator price ROC exhibits the strong negative divergence.

As shown above in 120 mins chart, prices have ended minor wave c of wave ii near 310 levels and started the next leg on downside in the form of wave iii. Currently, prices are moving near the crucial level of 280. Generally, crucial levels are taken out with a gap. Hence, there is a possibility that a strong selloff can start if prices sustain below 280 levels.

Tata motors currently made a low of 268 and the news came when the stock was already down by more than 4.22% on 21^st March 2013.

Trading based on news would not have necessarily helped you to take trading decisions but technical tools and concepts like Elliott wave can help you to act before everyone else does. Think….That is where the difference lies!!!

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Tata Motors – A major topping process!

Tata Motors – A major topping process!

By Waves Strategy Advisors. For more information on daily research report that contains Nifty and 3 different stocks write to helpdesk@wavesstrategy.com or call on +91 9920422202. Visit www.wavesstrategy.com

Tata motors chart shows very interesting and crucial juncture. Prices have moved up on slower momentum on different degrees from short to medium term. A very important topping process is forming in this stock.

To know more such opportunities in stocks and the direction of Indian equity markets subscribe to the daily research report “The Financial Waves Short term update”

        “Reliance Industries results were above expectations but the stock made a low of 880 below the price before the result announcement. RBI not only cut repo rate but CRR as well by 25 bps but Nifty reversed on same very day and is trading below the levels before the monetary announcement.”

Do not trade on NEWS but use technical charts and think objectively!

Tata Motors Weekly chart:

Tata Motors Daily chart:

Tata Motors 120 mins chart:

Waves Analysis:

We have mentioned in the previous update of 21^st January 2013, “Prices are in the matured stage and moving in the form of wave E of 5. Loss of momentum on upside shown by momentum indicator price ROC (shown above in weekly chart) suggest that upside is limited and prices should not move above 345/350 levels”.

We have been very accurate in capturing the top for Tata Motors. Prices have exactly reversed from the upper trendline of the wedge pattern consecutive for third time and moved lower till the support of 285 levels. 

Momentum indicator price ROC exhibits strong negative divergence (shown above in weekly chart) and steep fall in the previous week suggested that prices have completed wave E of wedge pattern near 340 levels and started an impulsive move on downside. At present, it seems that wave ii has completed near 61.8% retracement of the prior wave i and started the next leg on downside in the form of wave iii as shown above in 120 mins chart.

In short, 315 will act as a strong resistance. As long as this level is not taken out on upside our bias is negative and once again prices could move lower till the support of 285 levels. Further, move below 280 will take prices even lower till the next support of 260 levels.

By Waves Strategy Advisors. For more information on daily research report that contains Nifty and 3 different stocks write to helpdesk@wavesstrategy.com or call on +91 9920422202. Visit www.wavesstrategy.com

Tata Motors: Elliott Wave Structure....

Below was published in  "The Financial Waves" report by Waves Strategy Advisors. To subscribe write to helpdesk@wavesstrategy.com or visit www.wavesstrategy.com

Bottom line :Tata motors following Elliott Wave counts very precisely.

Tata Motors Daily chart:

Tata Motors 120 mins chart:

Anticipated on 4^th September 2012:

Happened:

Few wave counts are purposely not shown as they are meant only for our paid clients.

Waves Analysis: 

We have mentioned in the previous report of 4^th September 2012, “prices are moving lower in the form of minute wave (c) of b of B. As long as prices hold the resistance of 235 prices could move down till the next support zone which comes near 225/223 levels. Once this down leg is complete expect a bounce back towards 250 levels”. BANG ON!!!

We have been precise in capturing the Tata Motors steep move from 225-250 levels. Prices exactly bounced back from 225 levels, achieved the mentioned level of 250, thereafter it had a spectacular rally till 290.

As shown above in daily chart of Tata motors, prices have exactly retraced 61.8% of the prior wave A. After violent move on upside we have observe some profit booking in this stock.

From medium term perspective, trend is firmly bullish in Tata Motors.  Before it continues the uptrend we need to wait for prices to complete the one minor leg on downside and then it will continue the uptrend.

From wave perspective it is now tricky to mark the current up move as complete wave c. Wave c should usually be more time consuming and show loss of momentum. But it is lacking that characteristics and so we will wait for prices to break 250 levels for marking the top as wave c. If prices move back above 285 levels it will indicate some other wave structure is developing.

In short, as long as .........

To know the further movement on Tata motors write to us at helpdesk@wavesstrategy.com or call us @ 9920422202

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