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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Reliance Stock Analysis-25Feb2020

Reliance Industries Ltd (RIL) continued its correction after failing to cross 50 day SMA at 1510, and has lost nearly 100 points in last 3 trading sessions. Investors will observe that Reliance stock has been correcting rapidly but gaining slowly in the last 2 months. That’s because the stock is in sell zone, just like Nifty, and rise is slower and fall is faster. The lower supports are currently at 1400 and 1360. The chart is looking weak and Reliance stock has to come above its 50 day SMA to become bullish again, and that will probably coincide with Nifty index also coming into a buy zone.

Investors can use these corrections to accumulate the stock. But Traders should avoid any new long positions currently. Above 1500, fresh long positions can be created for target 1550-1560.

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Nifty Weightage – 25Feb2020

Security Name Closing Price (Rs.) MarketCap (Rs.Cr.) Weightage (%)
RIL 1,444.95 915,987.96 10.40
TCS 2,115.35 793,760.70 9.01
HDFC Bank 1,209.95 662,887.60 7.53
HUL 2,215.15 479,538.34 5.44
HDFC 2,292.30 396,469.32 4.50
ICICI Bank 529.85 342,894.76 3.89
Infosys 795.85 338,918.60 3.85
Kotak Bank 1,678.25 320,927.07 3.64
Bharti Airtel 529.90 289,089.98 3.28
Bajaj Finance 4,803.95 289,048.42 3.28
SBI 322.95 288,220.33 3.27
ITC Ltd 203.00 249,522.56 2.83
Axis Bank 725.45 204,634.20 2.32
Maruti Suzuki 6,470.40 195,457.88 2.22
L&T 1,259.70 176,829.51 2.01
Asian Paints 1,818.95 174,473.28 1.98
HCL Tech 595.15 161,503.78 1.83
Nestle 16,337.25 157,516.77 1.79
Bajaj Finserve 9,466.90 150,653.68 1.71
Wipro 244.20 139,514.79 1.58

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