Equity Alert: Tata Motors up 2%; resistance seen at 530 rupees

[K.Karthik Raja]

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Equity Alert: Tata Motors up 2%; resistance seen at 530 rupees
MUMBAI--11:05AM--Shares of Tata Motors were up 2% at 520 rupees on
a combination of bottom fishing and short covering in the derivatives
segment
The stock has support at 509-510 rupees and can rise up to 530
rupees intraday. Crossing that it can touch 538-540 rupees easily
The stock has lost 20% on equity dilution fears ever since the
company late May announced plans to raise 72 bln rupees via three
rights issues primarily to fund its Jaguar and Land Rover brands buy
from Ford Motor Co.
Regarding a report that Tata Motors' Nano bookings are likely to
start
mid-September ,the report to raise another $1 bln (43 bln rupees) for
new acquisitions is true,it means more pressure on the company's
finances."
Edelweiss Securities has a "buy" recommendation on the stock as it
sees the JLR acquisitions as earnings accretive post impact of equity
dilution.
However, Tata Motors' domestic commercial vehicle business looks a
little subdued in the near-term, particularly after the recent
significant increase in fuel prices .
So far today, 998,149 shares of the company have been traded on
NSE. Its June futures contract was trading at a 15-point discount to
the spot, with 1% rise in open interest.