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.
Tata Motors Limited (ADR) (NYSE:TTM) has been trying to form a base at $40 per share for the last 4 weeks after recent correction. This stock has the tendency to bounce back nicely from its lows because of two factors (a) positive results keep coming from Jaguar Land Rover (JLR) unit global sales and (b) very attractive valuation of under P/E 10 for 2015-2016, giving investors adequate safety and no sell off based on over valuation. Tata Motors (TTM) has a solid global franchise, and its own back end integration with Tata Steel for supplying automotive steels, which help in efficiencies. Our view: Tata Motors (TTM) can be bought at current price of $41-42 for upside targets of $49-50 by Nov 2015, giving 15-20% gain in 6 months.
20 Jan 2011: Wall Street tracked declines in equities around the world after growth in gross domestic product in China accelerated to a 9.8% rate in the final quarter of 2010. The faster-than-forecast growth rate bolstered concerns that China would do more interest-rate hikes to control inflation, thereby reducing Chinese demand for commodities and raw materials, potentially derailing the global economic recovery.
US stocks were in constant search of direction the whole day. For every five stocks climbing, nine fell on the NYSE, with nearly 1.2 billion shares traded. Stocks suffered a big loss in the initial trading hours but managed to move up later in the day as better than expected economic data tried to pull up stocks. A strong dollar and concerns that China might go for further tightening of its macro economic policies put a brake on this. Continue reading Positive US Economic Data supports US stocks – 20 Jan 2011 →