Analysis: TATAMOTORS (TTM)

Today’s pick is TATAMOTORS [stockquote]TATAMOTORS[/stockquote]. The stock started the year by reaching the Rs. 320 levels, followed by a drop to Rs. 220 levels by the end of June. It underwent head-and-shoulder bottom formation by reaching to Rs. 200 levels, and then started its up-move. The stock saw its 52 weeks high of Rs. 337 in January and since has been on a fall. In the last three months, the stock moved +3% Vs. -4% of the Nifty’s.

TATAMOTORS Technical analysis chart

Oscillator RSI and CMO are in no man’s land. The stock is currently trading close to the lower edge of Bollinger bands. Short-term technicals saw 18×9 bearish signal on Friday.

The MACD line and signal line are moving parallel to each other without giving any directional bias. Also, the Long-term and short-term GMMA lines are contracting and hence are unable to give any direction for the stock.

TATAMOTORS correlation chart

TATAMOTORS’s average correlation with the Nifty is 0.64 which is positive and strong. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]‘

TATAMOTORS Volatility chart

TATAMOTORS has a historical volatility in the range of 1 to 5. The scrip’s volatility is currently in the lower end of the range.

Here’s what analysts have to say about the stock.

TATAMOTORS Analysts coverage

Given these technicals, we suggest a short-term Sell. A long-term call could be taken depending on stocks price action near the support level of Rs. 280 levels.

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Weekly Recap

NIFTY.2013-02-25.2013-03-01

The NIFTY ended on a bearish note, melting down -2.92% for the week.
Biggest losers were SIEMENS (-9.50%), RELINFRA (-9.08%) and DLF (-7.85%).
And the biggest winners were TCS (+3.21%), JPASSOCIAT (+2.85%) and INFY (+2.58%).
Decliners eclipsed advancers 41 vs 9.

fii.2013-02-25.2013-03-01
Gold: +0.17%, Banks: -2.94%. Infrastructure: -0.64%,
Net FII flows for the week: $260.09 mm (Equity) and $328.07 mm (Debt)

 

 

 

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Analysis: ATFL

Today’s pick is ATFL [stockquote]ATFL[/stockquote]. The stock started the year with a run up to Rs. 510 levels, but was struck by double top around the levels to drop to Rs. 400 by the middle of October. Since then the stock has been on an uptrend reaching its 52 weeks high of Rs. 536 in January through February. This level has been acting as a dreaded resistance for the last few months. In the last three months, the stock moved +3% Vs. -4% of the Nifty’s.

ATFL technical analysis chart

Oscillator RSI and CMO are drifting towards over-sold bounds. The stock is currently trading close to the lower edge of Bollinger bands. Short-term technical saw a 18×4 and 9×4 bearish signal a couple of days ago.

The MACD line and signal line are moving parallel to each other without giving any directional bias. Although, the Long-term GMMA lines are currently expanding, the short-term lines are giving a negative outlook for the stock.

ATFL correlation chart

ATFL’s average correlation with the Nifty is 0.30 which is positive but weak. The scrip will not be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

ATFL volatility chart

ATFL has a historical volatility in the range of 0.3 to 0.8. The scrip’s volatility is currently in the lower end of the range.

Globe capital’s has a buy call based on fundamentals:

  • Sundrop light will continue to drive growth;
  • Strong pipeline for RTE (Ready To Eat) popcorn;
  • Peanut spread can be key growth driver;
  • Foray into Bangladesh;
  • Expanding distribution network;
  • Focussing on regular Capex;
  • Increasing corn prices will not affect margins;
  • Increase in stake of Conagra Food;

Given these technicals, we suggest a short-term sell. A long-term call could be taken depending on stocks price action near the resistance level of Rs. 520 levels.

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Analysis: RELIANCE

Today’s pick is RELIANCE [stockquote]RELIANCE[/stockquote]. The stock started the year with a fall to Rs. 650 levels by the end of middle of May. After finding support, the stock has been on an uptrend ever since. It saw its 52 weeks high of Rs. 955 in January and has since been on a fall to find support along the trend-line. In the last three months, the stock moved -2% Vs. -4% of the Nifty’s.

RELIANCE Technical Analysis Chart

Oscillator RSI and CMO are drifting towards over-sold bounds. The stock is trading close to the lower edge of Bollinger bands giving out a slight bullish signal. Short-term technical saw a 9×4 bearish signal a couple of days ago.

The MACD line and signal line are moving parallel to each other without giving any directional bias. Also, Long-term and short-term GMMA lines are currently contracting but are unable to give any direction for the stock.

RELIANCE correlation chart

RELIANCE’s average correlation with the Nifty is 0.72 which is positive and strong. The scrip will be replicating movement of Nifty quite closely. [stockquote]NIFTYBEES[/stockquote]

RELIANCE volatiliy chart

RELIANCE has a historical volatility in the range of 0.3 to 0.7. The scrip’s volatility is currently in the higher end of the range.

Given these technicals, we suggest a short-term hold with a keen eye on the behavior of stock near the trend-line. A long-term call could be taken depending on the directional movement of the stock about the trend-line. It would be nice to have tight trailing stop-losses to book profits in case of a sudden trend-reversal.

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