The immediate impact of the event on Jaguar Land Rover' (JLR) financial is unknown but it is estimated that by 2020 JLR is likely to incur a loss of 1 billion Pound due to Britain's exit from the EU. The hit is likely to com from a 10 per cent levy on vehicles being exported to Europe and 4 per cent on imports of components for the production of vehicles.
Technically, Tata Motors is riding an intermediate uptrend, having broken above Rs. 420 with a large volume, after making a double bottom at Rs. 295 earlier. The stock took support at at Rs. 420 on BREXIT news and has been currently trading above it.
The intermediate TO on TTO is placed above zero, with Synchronized Bullish Alignment (SBA), which indicate that once the short term correction is over, the stock is all set to move to higher levels and may touch Rs. 550-560.
In the unlikely event of the stock failing to hold Rs. 420, it may fall back in the range 295-420 for a prolonged period.
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| Tata Motors Weekly |
