The Tata Group Universe

JC Parets
October 13, 2021

What's the one thing that's on everyone's mind today? What has caught your attention today? Or rather, what has demanded your attention today?

The Tata Group of course! Such a move hasn't come along in this group in the longest time. A post dedicated to this group is definitely the need of the hour.

The Tata Group is synonymous with Trust, Integrity, and Loyalty. There is a certain feel-good factor added to the group based on the people at the helm and their activities. While there is a place for everything, once you look at price action, nothing else matters.

That's the beauty of Technical Analysis I guess. It encompasses all possible pieces of information and presents to you a price level that reflects everything. Quite powerful, when you really think about it.

So here we are today, taking a look at a reputable conglomerate that has been making money for investors for years together!

Since there are so many constituents in this group, I don't think it qualifies to be a Solar System. I feel it's a whole Universe by itself.

So what do we like in this universe at the moment?

Let's take a look, shall we?

NSE has an index dedicated to the Tata Group, and we decided to take a look at that first.

As can be seen from the chart below, the index has been moving from the bottom left corner to the top right corner consistently. While there have been times when the index has moved sideways, the primary trend has been up.

What is also important to note is that this index comprises 24 stocks. Yup, 24! I told you this was a universe and not a solar system.

What we have in the chart at present is a breakout. Several stocks from this Group are up to something and we'd like to see just what that is.

So while we have been discussing Tata stocks in our Trade Ideas section regularly, we thought a whole post dedicated to this universe is the best way to cover it.

Click on the chart to zoom in.

So let's see where the stocks are at, and what are the best setups from current levels.

Tata Motors has been on our radar since early February. While the move in this particular scenario has been a tad bit muted, it's time to track it again. Why? Well, we have a smiley face to look out for!

The price has broken out above the resistance of 402, a level that hasn’t been conquered for almost four years now! So what do we expect post the 20% move today?

The next target that we’re tracking is 612, with a risk management level of 402. The price is halfway through the target already, but these are the levels to keep in mind.

Tata motor DVR has only recently moved past its 2020 high. Post that we saw a minor consolidation close to 170 and now we have a breakout. The price has moved past the 161.8% Fibonacci retracement and is now headed towards its target of 258. The indicator too is in the bullish momentum territory, adding strength to the move.

The price has been moving slightly lower when it comes to TCS. IT as a sector has been taking a breather post its strong move. But the level to watch out for when it comes to TCS on the weekly chart is 3,520. That’s our risk management level at the moment. A move below this, and we’d be more comfortable putting our money elsewhere.

The next target to track, however, would be 4,765.

Tata Steel had a strong run after it broke above its 2018 highs. Currently, the momentum is slowing down. We are bullish as long as it remains above 1,128 with a target near 1,670.

Tata Power has also broken above the 13-year base. It's halfway through its immediate target of 250. A move above 250 could take the price close to 380. Remember, the bigger the base the higher in space! The risk management level here is 165.

Tata Chemical has been in a strong uptrend and has displayed great strength and momentum. We are bullish above the level of 832 with a target near 1,224.

Voltas has confirmed a breakout above our prior target of 1,248. It looks good for the next target of 1,755. This thesis is valid only above the risk management level of 1,248.

Trent is positive as long as it stays above the key Fibonacci level at 1,076, with the momentum indicator in bullish territory.  The next target to track would be 1,516.

Titan has been in a lot of action and a clear outperformer in Nifty 50.  Here a successful close above 2,472 will open up the target of 3,555. But we're waiting for a confirmation on that.

Tata Elxsi is another name that’s moved three quarters to its target already. The next level to track is 7290. This is a weekly chart that we’re looking at, if your time frame is longer, you may also follow the monthly chart levels. You can find the levels here.

Tata Communications is bullish above the risk management level of 1,140 for the target of 1,725.

Tata Coffee has shown tremendous strength after breaking out of an 8-year base. Price is already halfway through its immediate target of 240. A move above 240 could take the price towards 360.

Tata Investment Corporation is in a steady uptrend after breaking above the 13-year base. We are bullish above the level of 1,355 with a target near 2,090.

Tinplate has just broken above the 2018 highs. Remember how crucial the 2018 highs are? It's when risk-on parameters across the globe peaked and rolled over. Price moves above such historically important levels are crucial to track.

Here, it's important to get weekly close conformation above 325. It would open the target of 490.

ASAL is a nano-cap auto component stock. It's facing resistance at a key Fibonacci level. Price sustenance above 80 will open the target of 120.

NELCO has been on a spree of an upper circuit for quite some time. Now it's taking support at 790. As long as the price remains above 790, the target to track would be 1,209.

So this was our comprehensive coverage of the Tata Group Universe. While we discussed the ideas that were actionable and more relevant at this point, we will continue to track the others as well.

You can be sure that any move there will prompt a follow-up post on those stocks as well. So don’t you worry if you haven’t been invested in this Group yet. All is not lost. The move isn’t over and the market hasn’t come to an end. Every day is a new opportunity. Just follow your risk management system and the market will be kind.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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