The bad days for Tata Motors are in the market as last Friday stock slipped 6.5% at Rs 1,086 after reporting a 18% year-on-year growth in its consolidated net profit at Rs 2,638 crore for the quarter ended March 2011 over the previous year. It is a matter of concern as automobile maker has reported the lowest net profit growth in the last four quarters. Total income grew 19% at Rs 35,816 crore on a year-on-year basis.
One now need to keep the magic level of 1050 under scanner which if goes means that stock will get into the bearish mode as macroeconomic factors such as high inflation, rising interest rates and slow industrial growth are going to adversely impact the demand for commercial vehicles. The stock can fall to the levels 1010 in coming 3 days with Sl as 1121. On the positive side if stock moves above the level of 1121 we may see it moving to the levels of 1165. Do remember to follow our website for free sharemarkettips and make money making a second habit in your day trading career.
