Tata Consumer - How the Crash was Predictable Despite Results
Tata Consumer Products - Monthly Vs Weekly Comparison
1. On Monthly - the price formed Double Top pattern at 1,235 level on Sep 2024 and started falling 1.5 months ago. The Neckline is 1,017 level and when it breaks below - it will go down to 865, 698 levels
2. On Weekly - the price once again formed Double Top pattern at 1,222 level on 16th Sep and started falling for 5 Weeks already before today and has a target of 1,017 (which COMPLETED today)
One basic / Logical Question - When the price forms Bearish Patterns back-to-back on Multiple Timeframe Charts - How do you even expect the Results (Positive or Negative) to come and save it ????
And Watch today (Oct 21) - the price opened Gap Down - right below the Monthly Double Top Pattern's Neckline (at Candle Body Level) at 1,047 and took the hard Resistance and fell down -8.5% Intraday
But despite the fall - what saved it from Crashing further to LC or ending below -8% ? the same Monthly Pattern's Double Top Neckline (at Wick Level - 1,017)
Now the price is sandwiched between Wick & Candle Levels of Double Top Neckline
Now - Let's review the same situation from a different Source of Truth. A Comparison of Nifty_Tata_25 Index, Nifty FMCG Index
1. Nifty_Tata_25 index is going thru a Falling Parallel Channel and it ended up right below Resistance yesterday. So Obviously TATA Stocks were set to fall today - but Which one of those ? Today there were multiple Tata Stocks disclosing their Quarterly Results. Some Strong, Some Good, Some Weak - but net result the overall Tata Group stock had to go down - That's the destiny
2. Nifty FMCG Index - the price is again going thru Falling Parallel Channel since Sep 26 and today it opened right at the support level of 60,840 and within few mins it crashed below.
Now that FMCG sector is crashing and Nifty_Tata_25 Index has to Fall - which of the 22 Tata Group stocks will take the Brunt of the Fall ???? - Simple - One and Only Tata Consumer Products
Todays' Tata Group Performance
1. Tejasnet +11%
2. Tata Chemicals +9%
3. Tata Investment +3.3%
4. IHCL (Hotels) +3%
These are the best performers today - and all 4 belong to 4 different sectors. Now let's look at the worst performers of Tata Group
1. Tata Consumer -7%
2. TRF -4.2%
3. Rallis -3.5%
4. Voltas -2.5%
Again - these 4 also belong to 4 different sectors and these 4 sectors are different from the best performing 4 sectors.
So, When Tata Group Index HAD TO FALL - its Obvious that Tata Consumer is the Only One to Take the Worst Hit Logically. Makes Sense ????
----------------------------------------------------------------------------------------------------
Now Next Steps.
1. Nifty Tata Index - ended right at support level
2. Tata Consumer - took support of the Falling Parallel Channel bottom and bounced from -8.5% to -7% (Blue Arrow)
So, its clear that Tata Consumer will Rise tomorrow.....But the rise would NOT be enough for Bullish Reversal - Why ? read below
As you can see on the Weekly Chart, the Double Top on Weekly's target is already achieved and hence the fall stopped temporarily, but the target of Monthly Double Top is 865 and 698.
So, tomorrow when the price rises, it would take a resistance from 1,050 levels again and go sideways for few days and then fall below to 865
Read the Blue Path which explains the extrapolated path it would take to fall down to 865 and even to 698 if needed
1. On Monthly - the price formed Double Top pattern at 1,235 level on Sep 2024 and started falling 1.5 months ago. The Neckline is 1,017 level and when it breaks below - it will go down to 865, 698 levels
2. On Weekly - the price once again formed Double Top pattern at 1,222 level on 16th Sep and started falling for 5 Weeks already before today and has a target of 1,017 (which COMPLETED today)
One basic / Logical Question - When the price forms Bearish Patterns back-to-back on Multiple Timeframe Charts - How do you even expect the Results (Positive or Negative) to come and save it ????
And Watch today (Oct 21) - the price opened Gap Down - right below the Monthly Double Top Pattern's Neckline (at Candle Body Level) at 1,047 and took the hard Resistance and fell down -8.5% Intraday
But despite the fall - what saved it from Crashing further to LC or ending below -8% ? the same Monthly Pattern's Double Top Neckline (at Wick Level - 1,017)
Now the price is sandwiched between Wick & Candle Levels of Double Top Neckline
Now - Let's review the same situation from a different Source of Truth. A Comparison of Nifty_Tata_25 Index, Nifty FMCG Index
1. Nifty_Tata_25 index is going thru a Falling Parallel Channel and it ended up right below Resistance yesterday. So Obviously TATA Stocks were set to fall today - but Which one of those ? Today there were multiple Tata Stocks disclosing their Quarterly Results. Some Strong, Some Good, Some Weak - but net result the overall Tata Group stock had to go down - That's the destiny
2. Nifty FMCG Index - the price is again going thru Falling Parallel Channel since Sep 26 and today it opened right at the support level of 60,840 and within few mins it crashed below.
Now that FMCG sector is crashing and Nifty_Tata_25 Index has to Fall - which of the 22 Tata Group stocks will take the Brunt of the Fall ???? - Simple - One and Only Tata Consumer Products
Todays' Tata Group Performance
1. Tejasnet +11%
2. Tata Chemicals +9%
3. Tata Investment +3.3%
4. IHCL (Hotels) +3%
These are the best performers today - and all 4 belong to 4 different sectors. Now let's look at the worst performers of Tata Group
1. Tata Consumer -7%
2. TRF -4.2%
3. Rallis -3.5%
4. Voltas -2.5%
Again - these 4 also belong to 4 different sectors and these 4 sectors are different from the best performing 4 sectors.
So, When Tata Group Index HAD TO FALL - its Obvious that Tata Consumer is the Only One to Take the Worst Hit Logically. Makes Sense ????
----------------------------------------------------------------------------------------------------
Now Next Steps.
1. Nifty Tata Index - ended right at support level
2. Tata Consumer - took support of the Falling Parallel Channel bottom and bounced from -8.5% to -7% (Blue Arrow)
So, its clear that Tata Consumer will Rise tomorrow.....But the rise would NOT be enough for Bullish Reversal - Why ? read below
As you can see on the Weekly Chart, the Double Top on Weekly's target is already achieved and hence the fall stopped temporarily, but the target of Monthly Double Top is 865 and 698.
So, tomorrow when the price rises, it would take a resistance from 1,050 levels again and go sideways for few days and then fall below to 865
Read the Blue Path which explains the extrapolated path it would take to fall down to 865 and even to 698 if needed
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.