Fundamentally, developments within Tata Conglomerate are causing major concerns among investors and traders alike. When we think from the perspective of large share holders in Tata, Decision making is very frustrating process. In Tata motors DV ltd. Price Action reflects the situation precisely, Tata stocks are getting nailed down as long-term investors are naturally risk averse, and so in their best interest they’re avoiding uncertainties. Recent price movement is a result of risk averse action by long-term investors.
Tata Motors DV ltd is in Uptrend since Mid February 2016 and prices are supported by long-term uptrend line. Though recent events in Tata have caught retail investors by surprise, it seems that large players already knew what was about to come. When we see the Price action on Daily chart, Stock entered into correction phase from September, It seems as a result of large stake holders selling their shares ahead.
Market prices are testing the long-term trend line which was intact since mid February 2016. Uptrend line kept providing technical support for the bulls throughout the period. Market prices are now testing the same trend line and we can notice the gap breakdown around 340.00 – 330.00 slightly below the trend line.
If there is real buying interest in the stock then prices should bounce back, as it goes lower. Initial support will be at 300.00 and ideal resistance will be around 350.00. Market should clearly break either of these levels to trend. Price action is driven by events of the company, so it pays to focus on any news or key reports, also observe how market prices respond to it.
