TATAMOTORS ANALYSIS

Tatamotors made a high of 324.3 from the weekLEMA of 277 on the news of it's Good sales only to complete a B and now the C down has started. Currently, again it a has made a low of 278 which is a weekly support at Week LEMA. 200 DMA is at 291.8 levles also a Cluster of resitances at 289-291 levels by way of 13,50,55,100 and 200 DMA.

A consolidation or a trading range between 278 - 291 in on and break down would be severe.

Week Chart:

A Symetrical triangle is formed by the Long Term Trendline and the resisting Trendline.  Breakdown of 278 - weekLema and Long term Trendline would initially bring down to 265 levels - Contracting triangle. Break down of Contracting Triangle would drag down near 250 levels.

This view is supported by the Wolfe Wave formed in Day Charts.

WOLFE WAVE CHART:

 

If the Point 4 is considered at 4.a i.e 271.8, then the point 6 would form near 270-265 levels.

If Point 4 at 263 is considered then point 6 would be formed well below 250.

Day Chart:

A good trading range between 278 - 291 and an EOD close above 200 DMA would warrant caution in Long positions.

NIFTY ANALYSIS

Nifty has made a low of 5306 today which is a long term monthly/weekly support. Holding 5300 - nifty might try to attempt a pause. But on break of 5300 - nifty would swiftly reach below 5100 levels in a weekly/ Monthly perspective. How long ot would hold 5300???? - Market only can give us the answer.

Monthly Charts:

  CHANNEL SUPPORT AT 5300 LEVELS. Break of 5300 - severe fall on cards.

Weekly Charts.:
A Wolfe Wave pattern is completed. Also Nifty at Channel Supports.

If any pause in downmove is to occur then 5300 must hold. Also 61.8% retracement for the rise from 4770 - 6229 is 5327. This being a golden ratio is likely to provide the pause required.

High Risk Aggressive Longs to be attempted with Stirct SL of 5290 - only based on channel support - which could be easily broken considering the nature of the fall.