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Analysis: TATAMOTORS (TTM)

|Includes:Tata Motors Limited (TTM)

Today's pick is TATAMOTORS (NYSE:TTM). The stock started the year by reaching the Rs. 320 levels, followed by a drop to Rs. 220 levels by the end of June. It underwent head-and-shoulder bottom formation by reaching to Rs. 200 levels, and then started its up-move. The stock saw its 52 weeks high of Rs. 337 in January and since has been on a fall. In the last three months, the stock moved +3% Vs. -4% of the Nifty's.

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Oscillator RSI and CMO are in no man's land. The stock is currently trading close to the lower edge of Bollinger bands. Short-term technicals saw 18x9 bearish signal on Friday.

The MACD line and signal line are moving parallel to each other without giving any directional bias. Also, the Long-term and short-term GMMA lines are contracting and hence are unable to give any direction for the stock.

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TATAMOTORS's average correlation with the Nifty is 0.64 which is positive and strong. The scrip will be replicating movement of Nifty.

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TATAMOTORS has a historical volatility in the range of 1 to 5. The scrip's volatility is currently in the lower end of the range.

Here's what analysts have to say about the stock.

(Source: STREETINSIDER)Click to enlarge

Given these technicals, we suggest a short-term Sell. A long-term call could be taken depending on stocks price action near the support level of Rs. 280 levels.

This article first appeared on Your Money@StockViz.biz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: TTM