Tata Motor has been in reverse gear for quite a long time. The downtrend is so powerful that no positives seem to be healing the counter. During recent past we have seen some accelerated fall and the counter almost kissed 260 levels. This level is quite important as the earlier up move was commenced from here. In technical parlance we can say that 260 is the major support as clearly visible in a following weekly chart.
Now let us try to analyse the daily chart. We can clearly see the formation of a classical doji candle on a daily time frame. This particular doji is very important for couple of reasons. First we can see a small base formation around 265 levels after a sustained down move. Second as mentioned above 260 is the very crucial support area for the counter.
Other leading technical indicators like RSI & Stochastic are extremely in a oversold zone. So from the above analysis we can conclude that chances of a technical bounce from here are very high. The counter may change gear from reverse to first but how long will it take to be in a top gear is questionable. Possible bounce could be around 285-288 levels.
Now let us try to analyse the daily chart. We can clearly see the formation of a classical doji candle on a daily time frame. This particular doji is very important for couple of reasons. First we can see a small base formation around 265 levels after a sustained down move. Second as mentioned above 260 is the very crucial support area for the counter.
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