Bearish days for Tata Motors Ltd

India’s largest automobile manufacturer, Tata Motors shares have been facing a downward trend with a 30% fall in their share prices. The company’s share price has been in a bearish trend since 20th January 2020 which has been continuing till date, but there has been some bullish candlesticks over past few trading sessions portraying the engulfing bullish candlesticks. The company has been in the news for taking advantage of its market position and abused their dealer by dictating the quantity and type of vehicle they should store as stock which triggers a negative market sentiment about the company.

The Ichimoku indicator is showing an upward trend for the stock in the market as it continues to form the green cloud in an upward direction, whereas the prices of the stock can be seen falling over a long duration. This indicates that there may be a change of trend for the stock as the futuristic market sentiments for the company will be bullish but not currently. The Chikou span is also showing a downward trend for the stock along with the conversion and base line depicting the fall of share price over few trading sessions. 


The Coronavirus outbreak has also impacted on the sales of the company as its subsidiary JLR’s China has been affected very badly and also in addition to the economic slowdown in India has an impact on the company’s share price. The following graph shows that the trend of the stock is bullish and also the candlestick have been forming below the bands of the moving envelope which is a signal for price correction of the stock and there would be a change in the trend of the stock in the future. The Parabolic SAR shows that there would be a downward trend in the share prices of the company for the upcoming trading sessions and the change of the trend signals are yet to be received for the future price movements.


 There are chances for the company’s share to be bullish as the market opens with a positive market sentiment for the stock and it would be better to play with support and resistance level for the stock as it will be tricky if the market trend turns out to be bullish.

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