Buy Tata Motors Limited (NSE: TATAMOTORS)
TATA MOTORS STOCK RECOMMENDATION
|Buy Range||80 – 85|
|Target||200 – 220|
|Duration||1.5 – 2 years|
|Potential Returns^||150 – 170%|
|CP#||Idea||Buy Range||Target||Duration||Potential Returns^|
|83.8||BUY||80 – 85||200 – 220||1.5 – 2 years||150 – 170%|
# CP – closing price on May 14, 2020.
^ Potential returns are calculated based on the median of buy range.
TATA MOTORS COMPANY OVERVIEW
Tata Motors Limited (NSE: TATAMOTORS) designs, develops, manufactures and sells a broad range of automotive vehicles such as passenger cars, trucks, buses, defence vehicles, sports utility vehicles and related accessories. The company offers its products under Tata, Daewoo, Fiat, Jaguar and Land Rover brands. Incorporated in 1945, Tata Motors Limited has operations in the United States, UK, rest of Europe, China and Internationally. The company reported a consolidated net profit of Rs 1,954.51 crore for the quarter ended December 31, 2019, compared to Rs 26,823.22 crore loss reported during the corresponding period of 2018-19.
TATA MOTORS STOCK INFORMATION
|Sectoral Index||Nifty Auto|
TATA MOTORS TECHNICAL ANALYSIS (WEEKLY)
- Looking at the Tata Motors historical share price, the stock had seen a spectacular rally from the bottom of around 11.5 (May 2001) and hit a fresh high of about 199.5 (May 2006).
- Share price of Tata Motors has slipped into sharp decline afterwards, had broken all the support during the 2008 financial crisis and moved near 25.
- The stock was recovered afterwards sharply and witnessed a strong rally during 2009-2015, rallying from ₹25 to lifetime high of ₹612.4. A whopping 2350% gain in just seven years.
- Since it’s lifetime high of ₹612.4 registered during February 2015, TATAMOTORS share price has been in a declining trend.
- After a consistent downtrend in the last five years, the stock price had taken the support on the Ultimate baseline, which corresponds to earlier lows, thereby making it strong support.
- As seen in the Tata Motors share price history, the primary trend is positive since 2001. There is a steady support baseline which is moving upwards along with price rise.
- Overall Tata Motors trend and the broader pattern are bullish, and recent closing above the Primary Trend had given us the opportunity to enter the stock (Inset view).
- Tata Motors share target will be double or more in the next two years.
TATA MOTORS TECHNICAL ANALYSIS (DAILY)
- Technically Tata Motors stock price had been moving in the higher top and higher bottom formation indicating positive bias.
- Attached Tata Motors share price chart had shown, the price had taken support several times on the Uptrend line.
- Momentum indicator like the 14-days RSI is rising and also suggesting buy Tata Motors share.
- So buy in the range of 80-85 and set TATAMOTORS share price target at 200-220.
TATA MOTORS TECHNICAL ANALYSIS - Boillinger Band
- Added Bollinger Band on NSE Tata Motors price chart. Bollinger band consists of a moving average and two standard deviations.
- During Uptrend, Tata Motors Limited share price had dropped near or above the moving average (middle) line. This is a pullback low typically occurs during an uptrend.
TATA MOTORS TECHNICAL ANALYSIS - Moving Average
- Ten days and twenty days moving averages are plotted on Tata Motors share price chart. These technical indicators are currently giving positive signals as the stock trades above the moving averages.
- This considers bullish, and one should follow Tata Motors stock recommendation as mentioned above.
TATA MOTORS TECHNICAL ANALYSIS - OBV
- As seen in the Tata Motors chart analysis, the OBV is trading above the 15 days MA of it’s on balance volume. Buying pressure is visible as the positive volume exceeds negative volume, and the OBV line rising upwards.
- The OBV measures the volume change with price to identify the smart money are buying and selling the positions in the stock. This suggests you should invest in Tata Motors at dips and build long positions with institutional investors.
CONCLUSION - TATA MOTORS SHARE PRICE FORECAST
Based on our long term investment recommendation, Tata Motors share price target will be 200-220 in the next 1.5-2 years.
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Investment Advice— Goodluck Capital (@CapitalGoodluck) May 15, 2020
Buy Tata Motors Limited
● CMP - 83.40
● Buy Range - 80-85
● Target - 200-220
● Expected Return - 150-170%
● #Investment Period - 1.5~2 years
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