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.
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.
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.
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.