Tata Motors' purchase of Jaguar Land Rover in 2008 means that it had pretty much been the proxy for the fortunes of Brexit vote in the Indian stock exchange in the past one week. The fate of the Brexit vote had pretty much been decided when the Indian markets opened on Friday. That meant that pretty much all bets were off on how much the stock would fall when the Indian markets opened. I, for one, pretty much expected all technical analysis to be thrown out of the window with there being panic in the air and blood on the streets. Let's have a look at what the stock did on Friday.
This is simply amazing dear readers! The stock bounced exactly off its strong support level at the 420 level! There have been reports of the company suffering losses of 1 billion pounds in case of Brexit. With all the panic around, there was a serious danger of the baby being thrown out along with the bathwater. In fact, I was expecting nothing less! Still, the stock manages to respect good ol' technical analysis and respect its support level. Makes a move up only to be stopped at EMA(20).
There is something to be said about keeping your cool on days like this and coming out the winning side. And as far as technical analysis is concerned, just one word needs to be said. Respect.
BTW, you can trade Tata Motors even on the US stock exchange. It goes by the symbol TTM.
Here is a post on my views on larger implications on the rise of Trump and Brexit.
Take care and good luck!
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