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Tata-Mistry battle: Here's how to trade Tata group stocks post the verdict

Ratan Tata vs Cyrus Mistry
Tata Group stocks jumped at the bourses after the Supreme Court on Friday set aside the December 2019 order of National Company Law Appellate Tribunal which had reinstated Cyrus Mistry as the Chairperson of Tata Sons Limited.

The apex court ruled in favour of Tata Sons bringing quietus to the half-decade old legal battle which started in 2016 with the removal of Mistry as Tata Sons Chairman. READ ABOUT IT HERE

At the bourses, Tata Steel soared 5 per cent, while Tata Motors, Tata Power, TCS, Tata Elsxi, and Tata Chemicals were up in the range of 3 per cent to 4 per cent. In comparison, the benchmark S^P BSE Sensex was trading 1 per cent, or 660 points, higher at 11:50 am.

Here's how to trade Tata Group stocks:

Tata Steel Ltd (TATASTEEL): The recent breakout above Rs 730 levels has failed to garner follow-up buying. This has led to the stock re-testing the sentimental and 50-days moving average (DMA) support of Rs 700 - 698 mark, as per the daily chart. Going forward, as long as the stock defends the 50-DMA level, the rebound may see a recovery towards Rs 750 levels. The Relative Strength Index (RSI) needs to conquer 57 value, which is its immediate resistance. A strong close above Rs 750 may result in a breakout towards Rs 800 levels. CLICK HERE FOR THE CHART

Tata Chemicals Ltd (TATACHEM): Despite the selling pressure near Rs 800 levels, the stock is firmly defending the closing basis support of Rs 700 levels, daily chart shows. The immediate trend suggests sideways movement and the major trend is expected to emerge after breaking the mentioned levels. The volumes have been sluggish on the negative candles, suggesting negative sentiment is not supported by market participants, as per the daily chart. CLICK HERE FOR THE CHART

Tata Motors Ltd (TATAMOTORS): After breaking the horizontal trendline support of Rs 300 levels along with 50-DMA at Rs 299, the weakness and negative sentiment are suggesting fresh downside. The Moving Average Convergence Divergence (MACD) has broken the zero line downward, indicating bearish trend for the upcoming sessions.While the next support comes at the Rs 259 levels, the reversal seems to be facing several resistances at the 50-DMA, Rs 320 and Rs 340 levels, as per the daily chart. CLICK HERE FOR THE CHART

Tata Consultancy Services (TCS):  A clear hurdle of 50-DMA, currently placed at Rs 3,119, is hampering the sock's up move, as per the daily chart. The constant effort to conquer the obstacle has a closing basis supported of Rs 3,000 levels. That said, till the RSI trades above 40 value, bullish trend may remain intact. Further, the MACD is attempting to cross the zero line on the upside.If that happens, the momentum and direction is expected to stay in rising mode, as per the daily chart. CLICK HERE FOR THE CHART

Tata Elxsi Ltd (TATAELXSI): The stock has broken 50-DMA on the downside after three months. If this results in a decisive breakdown, which has not been seen in the last 9 months, the stock may attract bearish sentiment in the near-term, as per the daily chart. The downside may extend to Rs 2,400 levels, which is the next support. That said, if the counter succeeds in conquering Rs 2,800 mark, then a breakout may see a rise towards the range of Rs 3,000 to Rs 2,900 levels. CLICK HERE FOR THE CHART

Tata Consumer Products Ltd (TATACONSUM): This stock is witnessing heavy selling in the range of Rs 650 to Rs 630 levels, as per the weekly chart. In the absence of any decisive close above Rs 650 mark, selling pressure may aggravate. That said, while the RSI has a bearish divergence, the stock price is not showing an integrated weakness. As long as the RSI is above the support of 55 value, the upside bias may prevail. The medium support comes at Rs 550 levels, as per the weekly chart. CLICK HERE FOR THE CHART

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