Following
(chart 1) is the weekly chart of TATA Motors. This chart has been
following Elliott wave classic impulse pattern, since the bottom made in
2009. The stock completed wave 1 in November 2010 and is in wave 3
since September 2011. Now it appears that wave 3 is either complete at
the recent high of 611 or is about to complete. This should be followed
by a wave 4 correction.
20+Feb+2015.png)
Just
for reference below are some old charts that show how well TATA Motors
is showing the bullish impulse waves. These are the weekly and monthly
charts of TATA Motors (chart 2 and chart 3) that I had analyzed in Mar
2014. Till now it seems to be going beautifully on track.
18+mar+2014.png)
18+mar+2014.png)
Conclusion
If the
above analysis is correct and TATA motors is about to complete the
rally it has been in since 2011, that has implications for NSE Nifty.
Since this stock has been one of the leaders for Nifty uptrend, any
expected significant correction in this stock would mean a significant
correction in Nifty.
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