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A Complete Analysis On TATA Motors - Buy / Sell / Avoid

A Complete Analysis On TATA Motors - Buy / Sell / Avoid

This week was extremely volatile with some big news related to giant companies. In upper side 11000 is still acting like a big hurdle for nifty to cross and in lower side 10650 is acting like a crucial support. In today’s post we will discuss about TATA Motors. 

This stock has tanked almost 20-25% on 8th February 2019. That fall was mostly because of weak JLR numbers and the concerns which were arising for Britain. But this week TATA Motors has strongly recovered from 150 to 160. Now the big question is shall we buy this stock or shall we avoid? Let’s start this topic.

About the company

It is an Indian multinational automotive manufacturing company which primary products are passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military vehicles. In FY 2017-18 company reported a net profit of 6813 crores compared to 6063 crores in FY 2016-17 in consolidated basis. This company is also ranked 226th on the Fortune Global 500 list of world’s biggest corporations as of 2016.

Shall we buy?

Well, this question is always a subjective type question. Whether you should buy or not that is completely your choice because it is your money. I can only suggest with my analysis which may help you to understand the things more clearly. The end decision will be yours.

As per my suggestion if you want to buy then you should buy this between 145-150 range. One more thing I will add that if this stock comes down then this can come to 130. This is because it has a strong support near 130. Let’s see this in chart.


This is the monthly chart of TATA Motors. We can clearly see that 130-150 is the price range where it is expected to consolidate. But this will only happen if it comes down to this level. If it never comes to this level, then you might not get a chance to see these price levels again. 

Why I think that this stock can come down as the volumes are not supporting the price action in this stock. There was a sharp buying from the price level of 130. Normally this kind of candle is called hammer pattern which indicates a buying opportunity. But as this is not supported by volumes which is clearly seen from previous month’s volume bar, I can say this can be a trap.


So if you want to buy this stock then wait for 150 and buy only 25% of your total amount you want to invest. Then if it comes to 130 then buy more 25%. This is the best strategy as per my analysis.

From the fundamental prospective TATA Motors is a good share with the brand name of TATA’s. But each stock has its good phase and bad phase. It’s only you who will decide whether to invest in this stock or not. I always advise that if you have 1% doubt then don’t invest. One should invest only when he is sure for 100% that he wants to invest.

That’s all for now. Stay connected.

Stay happy, Stay healthy, Happy investing.

(Disclosure- I have this share in my portfolio)

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