Tata Steel, UPL, Tata Motors: Bear grip firm on stocks with UK exposure

A Gap down closing on December 21, 2020 dismantled the upside bias in Tata Steel stock

A newly mutated coronavirus is creating havoc in the United Kingdom (UK) with nearly 30 countries, including India, imposing travel ban to and from the island country. A new variant of Sars-Cov-2 has been found in the UK and is reportedly "out of control", an announcement that set off alarm bells across the global markets.

Bears were raging at the bourses for second straight day on Tuesday as a possible stall in the economic recovery, and concerns that authorised vaccines may not work against the new strain worried investors. The benchmark S&P BSE Sensex slipped over 440 points in the intra-day deals today and hit a low of 45,112.

In effect, companies having exposure to the UK markets saw their stocks cracking at the bourses. Shares of Tata Group companies -- Tata Steel and Tata Motors -- have declined 7.4 per cent and 13 per cent, respectively, on the BSE in two trading sessions, while that of UPL have slumped 7.3 per cent during the period.

Let's take a look at how the recent correction places these stocks on the technical charts:

Tata Steel Ltd (TATASTEEL): A Gap down closing on December 21, 2020 dismantled the upside bias in the stock. However, as long as the stock holds the support of Rs 575 levels, it may regain its upside momentum. On the weekly chart, the stock broke below the low of 'spinning top', placed at Rs 617, that induced a negative outlook. The Relative Strength Index (RSI) has formed a negative crossover suggesting selling pressure to get intense if crucial supports are broken ahead. On the upside, the stock needs to conquer Rs 625 levels to enter the bull territory. The next support comes at Rs 552 levels. CLICK HERE FOR THE CHART
 
Tata Motors Ltd (TATAMOTORS): The support of 100-weekly moving average (WMA) is placed at Rs 144 levels, and the current weakness may be testing the same. The next immediate support for the stock comes at 50-WMA which is placed at 125 levels. The breakout above 100-WMA may trigger a rally towards Rs 244 levels over the medium-term, which is the stock's 200-WMA. The daily chart indicates the support at 50-days moving average (DMA) seen at 156. CLICK HERE FOR THE CHART
 
UPL Limited (UPL): The medium-term outlook on the stock is bearish till the counter trades below Rs 500 levels. Although, the Moving Average Convergence Divergence (MACD) has crossed the zero line upward, the momentum and direction are not in the favour of bulls. The counter is losing bullish bias as any every upward movement is losing to selling pressure. Any breach below the level of Rs 400 may drag the stock towards Rs 360 levels. The immediate resistance comes in the range of Rs 450 -460 levels. CLICK HERE FOR THE CHART
 
SRF Limited (SRF): As long as the stock holds support of Rs 5,200 levels on a closing basis, the upside bias may see a strong recovery, as per the daily chart. Going forward, the counter needs to decisively close above Rs 5,400 levels to embark on a new upward trend. There is bearish divergence on RSI, but the stock is not showing any strong signs of weakness. CLICK HERE FOR THE CHART
 
Motherson Sumi Systems Limited (MOTHERSUMI): A "Double Top" formation on the daily chart has indicated a bearish sentiment. This downside rally may accelerate towards Rs 130 levels in the coming sessions. The immediate resistance comes at Rs 150 level followed by Rs 157 and Rs 165 levels. The upside bias is going to face strong selling pressure.  CLICK HERE FOR THE CHART
 
Balkrishna Industries Limited (BALKRISIND): The medium-term upside in the stock is located above the resistance of Rs 1,700 levels. The immediate trend suggests selling pressure at higher levels. The current levels are nearing 50-DMA placed at Rs 1,523 level. The counter needs to scale Rs 1,620 level with a firm aggression on volume to regain the losing sentiment. Any breach below Rs 1,500 level may trigger a downside rally towards Rs 1,450 level. CLICK HERE FOR THE CHART