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Tata and Mistry to part ways. Should you also exit Tata group stocks?

Mr. Ratan Tata
Shares of Tata group companies were trading mixed on Wednesday, a day after Shapoorji Pallonji Group, owned by the billionaire Mistry family, told the Supreme Court (SC) that it would exit Tata Sons, provided an early, fair, and equitable solution was reached.

Here's a quick look at how you should trade frontline stocks from the Tata stable.

Tata Consultancy Services Limited (TCS):  The range of Rs 2,450 to Rs 2,400 looks to be the opportunity for investors to buy as the stock can head towards Rs 2,700 levels in the sessions ahead. Till the counter defends Rs 2,400 decisively, the upside bias likely to view buying interest. The current price trend indicates a breakout above Rs 2,550 levels, which could see a rally in the direction of Rs 2,700 levels. CLICK HERE FOR THE CHART

 

Tata Motors Limited (TATAMOTORS): The daily chart clearly denotes a formation of “Double Top” that hints at an ensuing correction. If the counter stays below Rs 135 for another session, the stock may dip to Rs 126 and then Rs 121 levels in the near term. The volumes have been subdued lately and the price is also not showing any strength.  CLICK HERE FOR THE CHART

 

Tata Steel Ltd (TATASTEEL): The Relative Strength Index (RSI) has entered the oversold territory of 30 value and is currently trading at 28.58. The price is hovering around the 200-days moving average (DMA) placed at Rs 263.30 levels. A reversal in trend is possible only if the stock manages to close above the resistance of Rs 380 levels. The Moving Average Convergence Divergence (MACD) has breached the zero line downward, signaling weakness. The next support comes at 100-DMA, currently located at Rs 348.65 levels. CLICK HERE FOR THE CHART

  

Tata Consumer Products Ltd (TATACONSUM): The counter has broken the support of Rs 525 and is hovering around the 50-DMA located at Rs 502.85 levels. If this support of 50-DMA gets broken on a closing basis, Tata Consumer may see a downside towards Rs 439 levels, which is its 100-DMA, as per the daily chart. CLICK HERE FOR THE CHART

 

Tata Chemicals Ltd (TATACHEM): The stock was among market's darlings in August 2020, but has recently fallen out of favour and slipped to Rs 300 levels. Every upside has seen elevated selling pressure. The MACD has breached the zero line downward, suggesting weakness. The counter may gradually see Rs 260 in the near future if it fails to conquer Rs 300 levels. CLICK HERE FOR THE CHART

 

Tata Coffee Limited (TATACOFFEE): A “Head and Shoulder “ pattern has punctured the momentum, as per the daily chart. Till the price sustains above Rs 100 with MACD trading above the zero line, the counter may regain strength. However, if fails to do so, the weakness may trigger a downside towards Rs 90. On the higher side, Rs 105 to Rs 107 remains a key resistance area. CLICK HERE FOR THE CHART



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