overall trend in 2017 was down. Nifty
saw huge gains in 2017. I am not sure why the stock fell below 400 levels but with new TATA cars which have the heart of JLR designs, sales will definitely pick and they already have. I see a lot of new Hexa and other TATA cars. Also if you see the down channel
, the stock is holding 360 levels so it is highly unlikely that it shall fall below 450 levels. You can draw a three drives
pattern, which may look like it will drive the stock down further below 300 levels but i highly doubt that it is following this pattern.
2 reasons to long.- If this ends up in bullish butterfly
it will break the year long done channel. and if it breaks a year long down channel
then expect a huge upmove. see TechM
chart you will see that it shop up 100 points after it broke the year long down channel
See money control .you will notice bulk deals being executed. Feb contracts saw an increase in OI % with a decrease in price indicating a short positions being build up. Wait till expire for the shorts to cover. Above 370 we might see fresh buying.
I hope this helps.