Technical Analysis – Tata Motors – 06-Mar-2010
Tata Motors (Rs 795.3) vroomed higher in the opening session of the week propelled by strong quarterly numbers from its British arm, JLR and robust sales in February. The stock however gave up some gains on Friday to end the week 12 per cent higher. Key intermediate term resistance for this stock was at Rs 644 that lay at the 61.8 per cent retracement of the long-term down-move recorded between May 2006 and March last year. Tata Motors moved above this hurdle in December 2009 and is still holding above it. Medium term investors can use this as a stop loss level for their holding.
If the stock continues to trade above Rs 644, it can be expected to head towards former peak at Rs 965. It however needs to be noted that the stock faces long-term resistance in the band between Rs 930 and Rs 965 and turbulence can be expected as this level is neared.
*To get the password for buy calls, please subscribe to this blog. You will receive the password in next email to you*If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment