Tata Motors : Engines are Revving Up, Can you hear ?

If that bullish harmonic pattern kicks upto its full potential Horse power, the Tatamotors will accelerate to 600's. A daily close above the trendline (red) will ensure that. I drew Elliott at the end of my analysis, so you may or may not use wave counts - there is no issues. We can analyse Tatamotors simply with support & trendlines .

Support zone at 500's is vital for Tatamotors any close below that will make revving engine to grinding halt. Though the harmonic pattern achieved its targets already, its full potential is yet to kick in, if that happens we will have daily close above our trendline, so on swing trading we may pocket around 50 points in Tatamotors but lets wait for the close above trendline.

As we are discussing about Tatamotors we can't ignore whats happening within Tata Groups. But, be assured guys, A 100 Billion Dollar company which has more than 100 companies running business for ~150 years definitely know what " Business " means. Everyone of us know, how Tata groups are better in maintaining their ethics & moral values of business compared to Reliance. Reliance = No reliability, just my opinion. So these Mistry issues, news about write-off;s are temporary, you can trust Tata.

We may see a sell-off also in future but it will be correction for better future ahead. It looks like Mistry tried to make himself as sole representative of Tatason's in all companies ( unsure about this point ) , so only Ratan tata brought some changes in groups administration in favour of Tatason's to keep Tatagroup within their stronghold which hindered the power of Mistry ( We know administrative changes are made but this may or maynot be reason). Some are saying that Mistry failed in maintaining Tata groups ethics n values ( Rakesh sarna episode, dragging docomo to court ), as far as I heard Ratan Tata wanted to handle docomo smoothly instead of court battle. So its more of working style issue.

Tata's acquired Jaguar & corus around sametime, but Tatamotors turned around the fortunes for Jaguar but Tatasteel lagged behind. Ratan Tata believed in acquisition of companies & turning those into Profit making ones (did that too,examples are there) but Mistry's working style is to cut-down loss makers and maintain profit making ones. A simple ques : Will you sell your family business when it makes loss or you will try hard to make it profitable ?? Steel is the first business for Tata's & they love it to the core I believe. At some point conflict might be arised bcos of different strategy towards business ( Mistry- telling to cut down lose makers, Ratan Tata- asking Mistry to come up with plan to make it profitable ), so that may have led to current scenario. In my opinion there is nothing wrong about Ratan Tata's move. In the past, I had brief stint with 2 of the Tata group companies, so I may be little biased towards supporting Tata Group :)

Finally, Tata's know what they are doing & what does Business mean, so all these are temporary.
Comment: Just a day after, Engines are switched off. No issues, Hug the Bears & Roar with Bears !


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.