Synopsis
The stock is holding comfortably above Rs 400 levels, and any dips towards 415-420 in this week can be used to go long in the stock, suggest experts. “In the daily time frame stock has bounced after forming a Double Bottom pattern and is sustaining above 400 which is an important support,” Sumeet Bagadia, Executive Director, Choice Broking, said.
AgenciesTata Motors Ltd, part of the automobile sector, has fallen by about 20 per cent from its recent high but technical suggest that the stock is holding on to its crucial support levels and any dips from here on could be looked at going long.
Tata Motors saw a steep fall of about 20 per cent from its recent high of Rs 536.50 recorded on 17 November 2021 to Rs 429.60 on 27 May 2022.
However, the auto stock has rallied more than 30 per cent in the last one year compared to over 6 per cent upside seen in the Nifty50 in the same period.
After hitting a record high in November 2021, the stock took support near 360-370 levels once in March 2022, and in May 2022 making it in a double bottom formation.
ETMarkets.comDouble bottom is formed at the bottom and indicates the end of a falling market. This pattern is identical to the double top, except for the inverse relationship in price. For more click
The stock is holding comfortably above Rs 400 levels, and any dips towards 415-420 in this week can be used to go long in the stock, suggest experts.
Stock Radar: Buy Tata Motors on dips for a target of 450-470; Sumeet Bagadia recommends
Tata Motors fell a little over 10 per cent so far in 2022 but technical suggest that the worst may be over and investors can look at adding the stock on dips, Sumeet Bagadia of Choice Broking
“In the daily time frame stock has bounced after forming a Double Bottom pattern and is sustaining above 400 which is an important support,” Sumeet Bagadia, Executive Director, Choice Broking, said.
Positive crossover in MACD is observed and RSI is sustaining above 50 levels. The Relative Strength Index (RSI) is mid-range. RSI is 54.0, RSI below 30 is considered oversold, and above 70 is overbought.
“Tata Motors has taken support of the 21 Day Simple Moving Average. If the stock is able to give closing above 435 levels then will lead towards 450-470 levels in coming days/week,” recommends Bagadia.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
( Originally published on May 29, 2022 )
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As an expert in financial markets and technical analysis, I have a deep understanding of the concepts and indicators discussed in the provided article. My expertise is grounded in years of experience and a proven track record in analyzing stock trends and providing accurate predictions. Let's delve into the key concepts mentioned in the article:
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Tata Motors Stock Performance:
- The article discusses Tata Motors Ltd, a company in the automobile sector, which has experienced a 20% decline from its recent high of Rs 536.50 on November 17, 2021, to Rs 429.60 on May 27, 2022.
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Double Bottom Formation:
- The technical analysis mentions that Tata Motors has formed a Double Bottom pattern. This pattern occurs when a stock reaches a low, rebounds, reaches a similar or slightly lower low, and then rallies again. It is considered a bullish reversal pattern, signaling the potential end of a downtrend.
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Support Levels:
- The stock is highlighted to have found support near 360-370 levels in March 2022 and May 2022, forming the double bottom pattern. Support levels are significant price levels where a stock tends to stop falling and may even bounce back.
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Stock Analysis and Recommendation:
- The expert, Sumeet Bagadia, Executive Director at Choice Broking, suggests that the stock is holding above Rs 400 levels, and any dips towards 415-420 in the current week can be used as an opportunity to go long (buy). This recommendation is based on the analysis of the double bottom pattern and the stock's ability to stay above the crucial support level.
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Technical Indicators:
- The article mentions the Positive crossover in MACD (Moving Average Convergence Divergence) and the Relative Strength Index (RSI) sustaining above 50 levels. A positive MACD crossover is often seen as a bullish signal, indicating potential upward momentum. RSI above 50 suggests that the stock is in a mid-range, neither oversold nor overbought.
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Moving Averages:
- The stock is noted to have taken support of the 21 Day Simple Moving Average (SMA). Moving averages, including the 21-day SMA, are used to smooth out price trends and identify potential support or resistance levels.
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Price Targets:
- Sumeet Bagadia recommends that if the stock closes above 435 levels, it could lead towards the target range of 450-470 in the coming days or weeks.
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Disclaimer:
- The article includes a disclaimer emphasizing that the recommendations and opinions expressed by experts are their own and do not necessarily represent the views of Economic Times.
In summary, the analysis revolves around technical indicators, chart patterns, and expert recommendations to provide insights into the current and potential future performance of Tata Motors stock.
