Tata Motors: Has To Sustain Abv 320-330 For Further Rally

For TM, good support is now around 278-260 zone

And it has to close consecutively above 320-330 for any further rally

High probability of Auto Loan bubble may be the next headwinds in US

After Housing crisis in the last GFC (2007-08)

CMP: 301

Either sell below 298 or sell on rise around 320-330;

TGT1: 278-260*-251-242 (1-3M)

TGT2: 225-200*-184-168-155-139 (12-24M)

TSL> 335

NOTE: Consecutive closing (3 days) above 335, TM may rally up to 350-365-375-395 and 412-432 & 450-490 area (alternative bullish case scenario from present level).

Technically, for TM, 278-260 is strong support zone and only consecutive closing below 278, it may fall further towards 200-139 zone in the worst case scenario, like broader market meltdown towards 6300-5700 zone in Nifty (Global shock/China/Oil/EU credit fears/No economic recovery in India/Full Banking crisis & earning downgrades high probability)

As par BG metrics and current market parameters:

(based on consolidated TTM & FWD EPS)

Present median valuation of TM may be around: 350 (FY:15/TTM)

Projected fair valuation might be around: 400-435-465 (FY:16-18/FWD)

SCRIP	EPS(TTM)	BV(Act)	P/E(AVG)	Low	High	Median	200-DEMA	10-DEMA
TATAMOTORS	22.99	215.28	15	367.43	327.70	347.56	391.48	311.41

TATAMOTORS

30.55

235.75

15

423.55

377.76

400.66

391.48

311.41

TATAMOTORS

35.15

260.55

15

454.32

405.20

429.76

391.48

311.41

TATAMOTORS

40.75

292.25

15

489.17

436.29

462.73

391.48

311.41

Analytical Charts: