Tag: TATAMOTORS

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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Analysis: TATAMOTORS (TTM)

Today’s pick is TATAMOTORS (ADR: TTM) [stockquote]TATAMOTORS[/stockquote]. The stock began 2012 with an uptrend that took it all the way to its 52-week high of Rs. 320 in April. This was then followed by a correction to Rs. 200 levels which was seen in August. The stock has since been on an up-trend and looks poised to test Rs. 320 levels again. In the last three months, the stock has moved +15% vs. +5% of the Nifty’s.

TATAMOTORS Technical analysis chart

Oscillators RSI and CMO are flashing a bright red over-bought signal. Also, the stock is trading close to the upper Bollinger band which is short-term bearish.

The MACD line that just started moving down towards the signal line, along with the fall in histogram levels, is suggesting an imminent bearish move. However, long-term and short-term GMMA lines are experiencing an expansion giving out a bullish signal for the scrip.

TATAMOTORS correlation chart

TATAMOTORS’s average correlation with the Nifty is 0.64 is positive and strong. The scrip will be replicating the 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 currently is in the lower end of the range. The high volatility could be attributed to the face value split from Rs. 10 to Rs. 2 last year (September 2011.)Tata Motors Ltd (TTM.N) Analysts - Reuters.com

Analysts have mixed expectations with the scrip. Better than expected earnings for the current quarter can help bring some consensus to the table.

Dividend investors should also have a look at the DVR (Differential Voting Rights) version of the stock: TATAMTRDVR [stockquote]TATAMTRDVR[/stockquote] that is trading at almost half the valuation of the regular equity version.

To conclude, given these technicals, the stock is a short-term SELL. For the long-term we suggest a HOLD because of the strong underlying trend with a keen eye around Rs. 320 levels.

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Fiat India–Nice cars ruined by Tata Motors

Fiat 1100-103, 1954

Image via Wikipedia

Note to self: no matter what, do not outsource customer service.

Fiat has a decent lineup of cars in India. However, they have been extremely unlucky in choosing an Indian partner. Fiat cars were one of two models that were available during the dark days of the license-permit raj. Their earlier models (more than 30 years old) are still used as taxis in Mumbai. Why is it that given a choice, most people would not buy a Fiat now? I guess the answer is fairly simple: poor customer service.

Back in the 90’s Fiat partnered with Premier motors to introduce the Uno. I remember my dad “booking” a vehicle and waiting for over six months to actually take delivery. It was a complete disaster in terms of service levels. Parts were unavailable, mechanics did not know how to service the vehicle and there just weren’t many service centers accessible. Fast forward to 2011 and they are still where they were 20 years ago, except that they now have Tata Motors screwing things up for them.

How do you expect a partner to do a good job servicing your product when the same partner has equivalent models competing under his own brand name? No wonder Fiat gets a step-brotherly treatment. Ask me, its two weeks and counting to get parts for my Linea. Pathetic.

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