Tata Motors Ltd. – Head & Shoulder Break Down

Friends, if you have seen the automobile sector then it is consistently in downtrend from last 2 month. Before this, we have written our view on Maruti Suzuki Ltd. and it has worked nicely. In addition, we have found one more auto stock with new chart pattern.

Tata Motors Ltd. (NS: TATAMOTORS) formerly Tata Engineering and Locomotive Company, is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India. It is a part of Tata Group, an Indian conglomerate.

 
Technical Overview of TATA MOTORS: Here we are going to explain Head & Shoulder chart pattern. As we can see in below daily chart, the stock price has made the first top (Shoulder 1) on 5^th March 2019 and has given the confirmation of the first shoulder on 28^th March 2019. After, that price has made the second top (Head) on 18^th April 2019, but the level of the second top is greater than the previous one. Then the stock price has fallen down and stop near previous support i.e. around 169. Immediately in the next three trading days, the stock has made the third top (Shoulder 2) but this time level of the top is smaller than the previous one. On 6^th June 2019, the stock price has given closing near 169 and completed 100% Head & Shoulder on the daily chart. Volumes were good in compare of average volumes while creating the head & shoulder. You can see a clear picture in the second picture with volumes.

Now the stock has closed below their Neckline and given confirmation of Head & Shoulder break down. As per our view, Tata Motors is ready to fresh fall and next support is around 130. As per the chart pattern, the downside target is big and in support, the automobile sector is bearish. So more chances to touch their 52 weeks lows again.

 
Click here to read the fundamentals of the company.

Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above  

Tata Consultancy Services Ltd. – Ready to Bounce from Support

If we see IT stocks from the last 2-3 weeks, they have fallen from the top in this bullish market. In our last article on TCS, we caught it at 2080 and has reached to all our targets. Now again TCS looking bullish on the chart, below is the technical overview of the chart.

TCS is one of the largest IT Company in India. Also, it is one of the heavy weight company in Nifty50. TCS has declared its dividend on 04^th June 2019 (30.00 rupees per share).

Technical Overview of TCS: Usually we prefer Daily Candle Chart for analysis and it is working nicely. Last time we worked on Triangle Breakout and now we are trying to catch near support. If we see the daily chart then TCS has taken the support of Trend Line on 27^th May 2019. All candles are closed in the green in last to last week (27^th to 31^st May 2019). Now TCS is taking support from Previous Top i.e. around 2150 and has made Spinning Top near support. Also, volumes are average in the last 3 trading days, hope this correction is complete and TCS is ready for the fresh rally.

It seems like good buy on the chart from current price levels i.e. around 2190, keeping a small stop-loss of 2140 on the closing basis is advisable. Targets are 2250, 2275. Once TCS will cross and gives closing above 2275-2280 then TCS may show 2300 or more.

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Disclaimer: We are not a SEBI registered analyst. All calls or articles are studied purpose only. Please add your own analysis then trade at your own risk.