Technical Analysis

Ride on Tata Motors DVR

Updated on: Jul 09, 2011
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The long-term outlook remains positive for Tata Motors DVR as long as it stays above Rs 425. If the current trend remains, the DVR could reach Rs 735.

Tata Motor DVR: The immediate outlook for Tata Motors DVR appears to be positive. The stock finds an immediate resistance at Rs 620 and the support at Rs 545.

The long-term outlook remains positive for the stock as long as it stays above Rs 425. If the current trend remains, the stock could reach Rs 735.

F&O pointers: Despite sharp gains on Friday, Tata Motors DVR witnessed unwinding of long positions. This indicates that traders preferred to book profits rather than roll over their positions. Options are not active in Tata Motors DVR.

Strategy: Traders can consider going long on Tata Motors DVR. Stop-loss can be kept at Rs 545 for an initial target of Rs 620.

Market lot for Tata Motors DVR is 500 shares. Note that the strategy is for slightly longer period. Traders can even consider holding it till expiry.

JP Power Ventures: The immediate outlook turned negative for JP Power Ventures.

It now finds a support at Rs 43.2. However, a conclusive close below that could drag the stock towards Rs 38.4, a major support level for the stock.

Immediate resistance appears at Rs 49.15 and the crucial one at Rs 69.8. Only a conclusive close above Rs 69.8 would change the outlook to positive for the counter.

F&O pointers: The JP Power Venture futures shed open interest along with a fall in share price on Friday.

This indicates negative bias for the counter. Options did not see much of a trading activity.

Strategy: Traders can consider going short on JP Power Venture futures with a stop loss at Rs 49.

Follow-up: Last week we had advised traders to consider short strangle on Suzlon using 52.5 call and 45 put. As expected, the stock moved in that range only.

Traders can continue to hold the spread till expiry for maximum benefit. As of now, the position remains neutral.

We had also advised traders to consider going long in Reliance Communications.

The counter opened strongly on Monday but failed to hold on to the gains. But as advised traders can hold on to RCom futures with the stop-loss mentioned.

We had also advised buying RCom 100 call. This ended the week out-of-the money.

Feedback or queries (on positions) may be sent to >f& , > by Sunday noon. Replies will be published on Monday.

Published on July 09, 2011

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