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Tata motors-DVR has been on shaky wheels, moving sideways with a negative bias since early November. Investors with a short-term perspective can sell the stock at current levels. The stock encountered a significant hurdle at Rs 208 in early November. This halted the medium-term uptrend from the August low of Rs 121. The stock was unable to penetrate this level despite repeated attempts.
The medium-term up trendline was breached last week, denoting weakening medium-term trend. On Wednesday, the stock fell by 3.4 per cent breaching its 21-day moving average decisively. The indicators on the daily chart are displaying a negative divergence backing the trend reversal. These indicators are about to enter the bearish zone. The weekly indicators are also trending downwards. The daily price rate of change indicator has entered the negative terrain implying selling interest.
The stock can extend its near-term downtrend to the price target of Rs 186 or Rs 182 in the ensuing trading sessions. Traders can sell the stock while maintaining a stop-loss at Rs 198 levels.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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