Tata Motors (Daily Timeframe) Analysis

Chart Pattern & Trend:

Primary Trend: The stock previously followed a rising channel pattern, peaking near ₹1,176.50. After breaking the channel's lower boundary, it entered a significant downtrend.
Current Trend: Bearish, as the stock has consistently been making lower highs and lower lows.

Fibonacci Levels:
The Fibonacci retracement tool highlights key levels:

61.8% Level (₹880.35): This level acted as a minor support before breaking down.
50% Level (₹788.85): The stock is hovering around this level, attempting to stabilize.
38.2% Level (₹697.40): If the downtrend continues, this could be the next key support.
23.6% Level (₹584.20): A deeper correction might test this level in a prolonged bearish scenario.

Volume Analysis:

Declining volumes suggest weakening momentum on the downside.
A volume spike at key support levels could indicate buying interest.

RSI (Relative Strength Index):

RSI is in the oversold zone or nearing it, indicating potential for a short-term pullback or consolidation.

Key Levels to Watch:

Resistance: ₹880 (61.8% Fibonacci) and ₹900 are immediate resistance zones.
Support: ₹788 (current level) and ₹697 (38.2% Fibonacci) are critical supports.

Potential Scenarios:

Bullish Reversal: A breakout above ₹880 with increasing volumes could signal the beginning of a recovery.
Continued Bearishness: A breakdown below ₹788 could lead the stock toward ₹697 and ₹584.

Trading Strategy:

For Long Positions: Look for reversal patterns around ₹788 or ₹697, supported by RSI divergence and volume confirmation.
For Short Positions: Consider selling near resistance levels like ₹880 with a stop-loss above ₹900.

AngshumanSaikia

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