{"id":263715,"date":"2012-12-31T10:55:19","date_gmt":"2012-12-31T05:25:19","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=263715"},"modified":"2012-12-31T10:59:08","modified_gmt":"2012-12-31T05:29:08","slug":"analysis-tatamotors-ttm","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2012\/12\/31\/analysis-tatamotors-ttm\/","title":{"rendered":"Analysis: TATAMOTORS (TTM)"},"content":{"rendered":"

Today\u2019s 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%<\/strong><\/b> vs. +5% of the Nifty\u2019s. <\/p>\n

\"TATAMOTORS<\/a> <\/p>\n

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

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

\"TATAMOTORS<\/a> <\/p>\n

TATAMOTORS\u2019s average correlation<\/a> with the Nifty<\/a> is 0.64 is positive and strong. The scrip will be replicating the movement of Nifty. [stockquote]NIFTYBEES[\/stockquote] <\/p>\n

\"TATAMOTORS<\/a> <\/p>\n

TATAMOTORS has a historical volatility<\/a> in the range of 1 to 5. The scrip\u2019s 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<\/a> <\/p>\n

Analysts have mixed expectations with the scrip. Better than expected earnings for the current quarter can help bring some consensus to the table. <\/p>\n

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. <\/p>\n

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

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