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.
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Double 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
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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.
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)
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