Tata Motors, Tata Steel, TCS: Here's how to trade Tata Group stocks

Among the lot, Tata Consumer Products (TCPL) has gained 27.5 per cent in the past month, outperforming the Nifty FMCG index, which has risen 1.5 per cent during the period

Tata Group has been in the news recently - be it discussion with the British government regarding a financial rescue package, a hunt for a strategic partner for Jaguar Land Rover (JLR) or planning to sell its UK steel plant.

Tata Steel spokesperson said the firm was in ongoing and constructive talks with the UK government on areas of potential support. “Since these discussions have not reached a conclusion, it would be premature to comment on any options that may or may not be under consideration,” he said. READ ABOUT IT HERE

Closer home, Tata Group, e-learning app Unacademy, Reliance Jio and Patanjali are the Indian players in the race for IPL's title sponsorship, reports suggest.

Its consumer business, however, seems to be doing well. Tata Consumer Products (TCPL) has gained 27.5 per cent in the past month, outperforming the Nifty FMCG index, which has risen 1.5 per cent during the period. Consumers’ preference for branded staples and aggressive distribution expansion are two key factors improving TCPL’s growth visibility, analysts say. READ MORE HERE

Here are the levels you need to keep a tab on for frontline Tata Group stocks.

Tata Steel Ltd (TATASTEEL): From March 2020 low to the current highs, the counter has seen an enormous surge of over 70 per cent. This rally is now getting sold into and every upside above Rs 420 levels is facing stiff resistance. From a pure sentiment perspective, it should remain range-bound till it manages to stay above Rs 400 levels on a closing basis. The Relative Strength Index (RSI) has entered the overbought territory, a sign of the stock being overbought. CLICK HERE FOR THE CHART

Tata Motors Ltd (TATAMOTORS):  The stock is testing the resistance of its 200-days moving average (DMA) at the current levels. It did manage to cross this average, but should stay above it consistently on good volume for the enxt leg of the upside. On the downside, Rs 115 stays as a support. The immediate support, however, comes in at Rs 119 levels. The recent sessions had seen above “average volumes”, a sign of keen interest in this counter by market participants. This can show substantial jump if the counter manages to successfully conquer 200-DMA and can hit Rs 155 and then Rs 162 in the sessions ahead. CLICK HERE FOR THE CHART

Tata Consultancy Services Ltd (TCS):  The upside momentum seen over the past few weeks has now run into a short-term resistance at Rs 2,300 levels. That said, the overall medium-term perspective stays bullish on a breakout of “Golden Cross” of 50-DMA and 100-DMA with 200-DMA. On the other hand, it can correct sharply if the price falls below Rs 2,250 levels over the next few sessions. The support stays at 50-DMA, placed around Rs 2,173 levels. The RSI and Moving Average Convergence Divergence (MACD) have made negative crossovers, a sign of a weak trend. CLICK HERE FOR THE CHART

Tata Consumer Products Ltd (TATACONSUM): The price is showcasing enormous strength in the overbought territory of RSI. Typically, such a scenario is indicative of a strong momentum. For Tata Consumer, the up move is likely to continue till the support of Rs 530 is held on a closing basis. The price looks to be heading towards Rs 560 and then Rs 575 levels in the weeks ahead, as per the daily chart. CLICK HERE FOR THE CHART

Tata Chemicals Ltd (TATACHEM): After witnessing resistance around Rs 320 levels, the stock has corrected towards its 200-DMA. If this average is broken on a closing basis, then may see further dip in price towards Rs 270 levels. A reversal above the Rs 300 mark on good volumes may see Rs 314 and Rs 321 levels. RSI and MACD have made a negative crossover, which signifies an overall weak / downward trend. CLICK HERE FOR THE CHART