Market Summary – 25Feb2020

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L&T Stock Analysis- 25Feb2020

L&T has been one of the main laggards in Nifty index since last 2 years, and the stock continues its under performance even now! Investors should not make any fresh investment in L&T stock till it crosses 1400. The market seems to be telling investors that L&T is not doing things correctly. The stock has a tendency to make sudden sharp upmoves, which maybe short covering.

But a reliable upmove has not been seen in L&T stock in a very long time. While the company is exposed fully to the slowdown in Indian economy, there seems to be something more. Bearish set up with target 1200. Avoid!

The weekly chart is very bearish and 1200 is looking imminent target.

The monthly chart is also bearish and even 1000 is possible because of the constant bearish signals. The stock is unable to hold any gains at all, which means large investors have been dumping the stock all along. Avoid L&T stock till it closes above 1400 on monthly basis.

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Tata Motors Stock Analysis- 25Feb2020

Tata Motors stock is very bearish, and its following a head and shoulders pattern on the downside, with likely target of 125, while the current price is 150. The stock has been correcting from 200, with a bit of consolidation at 170 level, before fresh downmove.

The 50 day moving avg is also curving downwards, so it will need several days or weeks to get back any positive direction again. Tata Motors stock has failed many times to use the good set ups the stock had, which means, fundamental weakness is significant.

The latest coronavirus impact on Chinese economy will further impact Tata Motors. sales were already weak, and they may get weaker.

Investors should avoid Tata Motors stock and no new investment should be made in the stock at current levels. There’s nothing here! Plus the stock movements are very deceptive. A clean upside is possible only above 182. Traders can trade long or short in Tata Motors, and for the last 2 years, the short trade has been dominant.

Just see the above hourly chart. The stock has fallen from 184 to 150 within Feb 2020! There’s no investment case at all when a stock loses so much ground so fast.

Tata Motors management needs to take urgent action to save this company and rebuild it.



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