TATA MOTORS: SHORT TERM POSSIBILITY

LET US SIMPLIFY STOCK INVESTMENT

Please Note: This blog won’t follow the traditional method of writing reports, it will try and avoid any kind of jargons and terms that experts use. The attempt is to write in a language, that I would have understood when I was new to stock trading.

So if you are expecting what you have always read, you might be disappointed. However, if you read with an open mind, irrespective of how experienced you are, you might take a point or two back with you.

To the new bees: Happy Learning, To the Pro’s: All the best

Technical readings that can be understood and applied by all

Do follow our Facebook Page and be the first to read all the book summaries and blogs: 

Intelligent Investor (👈 Link)

TATA MOTORS

*Stocks trading BELOW 50 days Simple Moving Average (SMA) and 50 days SMA line is below 100 & 200 days SMA is considered to be in a downtrend, similarly, when the stock is trading ABOVE 50 days SMA and 50 days SMA line is above 100 & 200 days SMA is considered to be in an uptrend (Every expert might have their way of defining the trend, we follow this strategy)

TATA motors jumped 10.85% today and closed at 139.50 very close to its 100 SMA.

Important Points to note:

Charts created a GOLDEN CROSSOVER ( 30 SMA moved above 50 SMA)

This is a very important piece of information, last time this event happened on 12^th Mar 2019 and the stock moved upwards by 63 points

One future trade based on this theory could have earned you INR 189000 (3000 X 63)

Stock has not only broken the 50 SMA but also sustained comfortably above it.

Stock could not sustain above 100 SMA @ 142.15 and closed below it @ 139.50

What does it mean?

142.15 will act as an Upper fence for this stock and will try and stop it from moving forward. If this stock breaks this level and sustains above it, we are in for a nice money-making opportunity.

Option Chain Situation:

Maximum people are trying to stop this stock at 140 (50.1 Lakh Call Writers)

Followed by 150 (49.71 lakh Call Writers)

What does this mean?

Under derivatives (Option) many people make a bet that this stock will not cross a particular level (both up or down). In TATA MOTORS case the levels are 140 and 150

So we need to be alert when the stock is near these levels.

(I am making an attempts to make this complicated topic simple)  

Levels to watch out for:

Conclusion:

Technically this stock looks to be in a bull run (At least in the short run)

Golden Cross is a bullish sign and can do wonders for traders dealing with discipline   (Nothing is guaranteed)

It is looks like a great opportunity to make money, however, remember

Looks can be deceptive. 

Please Note:

The article intends to teach, please do not take positions based on what you read.

Do your research and talk to your advisor.

Technical knowledge helps in making entry and exit in the short run, however, wealth is made with time. Invest only that amount which will not pinch you if you make a loss.

During results and any specific news (good and bad), technical indicators do not work.

Even on regular days, there is no guarantee that stock will follow the above-mentioned rules, however, it is better to take an informed position.  

Dear Readers,

This blog is my personal attempt to help you.  If you find this article to be helpful, kindly share it with your near and dear ones.

I would be very glad to hear your feedback, in fact, it will motivate me to continue my journey of, Blog and Teach.

Thanks for reading, I hope you apply some or all the lessons learned and become a better investor consistently.

All the best!! 👍👍👍

Cheers 🍹

Intelligent Investor