Stock analysis :Tatamotors

About Tatamotors:

Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 2,32,834 crores (USD 38.9 billion) in 2013-14. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India.  With over 8 million Tata vehicles plying in India, Tata Motors is the country's market leader in commercial vehicles and among the top in passenger vehicles. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia, South America, CIS and Russia

Current announcement:

Tata Motors yesterday reported 10.69 per cent increase in total sales at 44,225 units in February, as against 39,951 units in the same month last year.

Domestic sales of Tata commercial and passenger vehicles grew by 14.15 per cent at 40,314 units as compared to 35,315 units in February 2014, Tata Motors said in a BSE filing.

Sales of passenger vehicles in the domestic market in February stood at 13,767 units, up 21.56 per cent from 11,325 units in February 2014.And they said The trend of growth in passenger vehicles continued with the strong Zest sales and good response to the all-new Bolt,

In the commercial vehicles segment, domestic sales were at 26,547 units during the month. Exports during the month stood at 3,911 units, down 15.63 per cent as against 4,636 units in the year-ago month.

The company’s sales of commercial vehicles in February 2015 in the domestic market at 26,547 nos., higher by 11%, over February 2014. LCV sales were at 14,357 nos., a decline of 4% over February 2014, while M&HCV sales continued to show growth at 12,190 nos., higher by 34%.

Exports

The Company’s sales from exports were 3,911 nos., in February 2015, lower by 16% compared to 4,636 vehicles in February 2014. The cumulative sales from exports for the fiscal at 44,498 nos., remained flat, compared to last year. 

 Analysis:

Tatamotors yesterday close was 584.15. Today open was 583.45 and closed at 574.60 Net changes Percentage was -1.63.Today Nifty has reached the 9000 level so there can be sell off in our market due to profit taking by traders. Tatamotors domestic sales grew 14 % for the month of February in 2015 compared to 2014. Please don’t buy stock for short term based up on this growth as all you know main challenge for this company is to post growth in JLR subsidiary JLR which is likely to be disappointing again.

For long term traders please wait till it reach 530 levels to buy this stock. If tomorrow it crosses the 571 level then which indicates down side of this stock .And my first target will be 564.90. Second target is 560.95 for short term.

Tatamotors this month target can be around 530 levels. In 530 levels strong support is there hence we can buy this stock for long term and short term at that level. 

Intraday 2 nd Trade - 3 rd Mar

Buy BHEL 300 shares @ Market price
Short CROMPGREAV 500 shares @  Market Price
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I will update my actual trade in comments section below.

If you think the profit you get is enough, please exit the trade.Don't Wait for my update.

Exit update:(3:15 Pm)

bhel	Bought 300 shares	271.5	274.85	1005
Crompgreav	Short 500 shares	180.25	181.25	-500
			Total Profit	505

Intraday Trade - 3 rd Mar

Shorted Idea 350 shares @Market Price
 Bought Bhartiairtel 200 shares @ Market Price
   -------------------------------------------

Update will follow in comments area below.

If you think the profit you get is enough, please exit the trade.Don't Wait for my update.

Exit Update:(3:15pm)

Bhartiaritel	Bought 200 shares	344.55	349.45	980
Idea	Short 350 shares	154	154.5	-175
			Total Profit	805

Intraday 2nd Trade - 2 nd March

Bought Tatamotor 200 shares @ Market price
Shorted Tvs motors 350 shares @  Market Price
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I will update my actual trade in comments section below.

If you think the profit you get is enough, please exit the trade.Don't Wait for my update.

Intraday Trade - 2 nd March

Shorted Axis bank 200 shares @ Market price
Bought IciciBank 400 shares @  Market Price
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I will update my actual trade in comments section below.

If you think the profit you get is enough, please exit the trade.Don't Wait for my update.

Postional Call

ICICI bank

    Buy ICICIbank 350 March Call  @ Market Price(Curreent  price-12.35)

    Target is  17.

Update 1:

Bought ICICI Bank 350 Call @ 10.50 -(2/03/2015)

Target is  17.

Option trading Strategy 1: Long Call

 When to use:

Call options give the buyer the right to buy the underlying stock at a specified price on or before a specified date (expiry date) when you think the market is very bullish you have to buy a call option. In general, the more out-of-the-money calls, the more bullish the strategy.

Long call strategy is buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and he would be expecting the market to give decent returns in future. An options trader buy call options with the belief that the price of call option will rise significantly beyond the strike price before the option expiration date.

This is one of the basic strategies and it is most basic option strategy. A long call option is the simplest way to benefit if you believe that the market will make an upward move and is the most common choice among first time investors.

As a buyer of call options, you are hoping for the value of the underlying stock to rise. An increase in the price of the underlying stock will result in an increase in the value of your options.

The seller of call options receives a premium for taking on the obligation to sell the underlying stock to the buyer of the options at the strike price if the buyer decides to exercise the option before expiry. If the buyer exercises the option, the seller must sell the underlying stock to the buyer at the strike

Price. If the buyer does not exercise the option, the seller simply retains the premium and the obligation expires with the option on the expiry date.

Risk:

The risk of the buyer is the amount paid by him to buy the Call Option i.e. the premium value. Your risk is limited on the downside if the market makes a correction. Risk for the long call options strategy is limited to the price paid for the call option no matter how low the stock price is trading on expiration date. Loss limited to amount paid for option. Maximum loss realized if market ends below option exercise A.

Profit:

 The Profit will be unlimited as the underlying asset value can rise up to any value until the expiry. Since they can be no limit as to how high the stock price can be at expiration date, there is no limit to the maximum profit possible when implementing the long call option strategy.

Profit increases as market rises.

Example:

 Currently Nifty is trading around 8900  levels, and if you think the current level is bullish for Nifty and buys one 8900 Call Option (ITM) for Rs. 200 premium. Lot size is 25. The investment amount will be Rs. 5000. (200*25)

Case 1: NIFTY closes at 9200 levels you will make a profit of Rs. 2500. [(300-200)*25]

Case 2: NIFTY dips to 8900 levels you will incur a loss of Rs. 5000 (200*25) which is the premium you paid for buying one lot of 8900 Call Option.