Tata Motors, Tata Steel, Tata Power: Trading strategies for these 3 Tata group stocks

Domestic stock indices fell sharply on Friday in the run up to Jerome Powell's speech at the Jackson Hole symposium. The BSE Sensex tanked 365.83 points, or 0.56 per cent, to settle at 64,886.51. The NSE Nifty dropped 120.90 points, or 0.262 per cent, to 19,265.80. Later, Powell signalled more rate hikes to curb inflation, but suggested that the US central bank would proceed carefully.

Select Tata Group stocks namely Tata Steel, Tata Motors and Tata Power Company are likely to be in focus on in today’s session. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on these stocks ahead of Monday's trading session:

Tata Steel | Sell | Target Price: Rs 107-102 | Stop Loss: Rs 122 |
Tata Steel is making a lower-top lower-bottom formation on the daily chart, which is a sign of weakness. The stock has good support at Rs 115 level, its 50-day SMA. If this level is breached, the stock may see downside momentum. The momentum indicator viz MACD is negatively poised. One can sell the stock at current price with a stop loss of Rs 122 for a target Rs 107-102 levels in the couple of weeks.

Tata Motors | Sell | Target Price: Rs 560-540 | Stop Loss: Rs 622 |
Tata Motors is making a lower-top lower-bottom formation on the daily chart, which is a sign of weakness. At present, the Rs 690 level is an immediate support. If breached, selling may intensify on the counter. The momentum indicator viz MACD is negatively poised. Hence, one can sell the stock at current levels with a stop loss of Rs 622 for a target of Rs 560-540 levels in the next couple of months.  

Tata Power Co| Buy | Target Price: Rs 274-289 | Stop Loss: Rs 229
Tata Power has given a breakout above Rs 245 level on the weekly chart, with good volumes. It made a high of Rs 251 last week and closed the week just below the breakout point. Since volumes were on the higher side, we believe that momentum on the upside is likely to continue. The momentum indicator, viz. MACD is also positively poised. One can buy the stock at current levels with a stop loss of Rs 229 for a target of Rs 274-289 levels in the next couple of weeks.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today.)

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