Tata Motors -Buy

2 Tem 2023

Tata Motors gave a multifold return in the 2020 -2022 period and now for a year it had been in a ranged phase. The stock is a perfect example of how an ideal correction should be in an uptrend. During this correction the price had formed a strong support around the price Level of 370 which happens to be 0.618 Fibonacci retracement level which had been tested multiple times. Recently it has broken it’s all-time high confirming a higher high and a lower low formation.
One can buy the stock when it closes above 600 with stop loss at 585 as it has given a breakout from the range and has completed the formation of Flag which is one the continuation patterns with volume confirming the price action and volatility increasing, the stock can rally up to 620 and 640 which is also the 1.272 Fibonacci ratio. The bullish signals can be seen on daily and weekly charts and hence ramification is likely to be large. Further the stock is having few shortfalls that suggests a strong momentum
Conclusion: The setup looks poised for a good move in the up-coming weeks. A gradual move towards the level of 620/640 is possible, with an excellent risk to reward ratio.