Equity Alert: Tata Motors dn 3% on profit sale, weak sector outlook

[K.Karthik Raja]

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Equity Alert: Tata Motors dn 3% on profit sale, weak sector outlook
MUMBAI--1:25PM--Tata Motors shares were down 2.6% at 644 rupees on
profit-
booking because of a negative outlook on the automobile sector, a
dealer said.
"I would not recommend a buy (rating) on Tata Motors in the
current market
situation. With the crude oil prices soaring to new highs, there is
talk of the
government raising oil product prices which will be further negative
for auto
stocks," the dealer said.
According to Nitin Kunte, technical advisor, Angel Broking, the
stock is
witnessing a technical breakout after it breached the crucial support
level
of 650 rupees.
"Next support level for the stock is around 625 rupees," he said.
So far today, the traded volume in Tata Motors was around 222,000
shares
on NSE and BSE combined. Its May futures were trading at a discount of
nearly
1% to the spot price, with open interest up 4%.
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