Hold short positions in Tata Motors, Manoj Murlidharan

Manoj Murlidharan Vayalar, IIFL PReMIA advice traders to hold short positions in Tata Motors.

Murlidharan told CNBC-TV18, “The pain here in Tata Motors started all the way from Rs 301 levels. If you see that was the level where we have seen some cash based distribution and after the results have come in, needless to say, we had seen 12% fall. Now the delivery which happened on the day of the result was quite high, they have exceeded the 21 day average as well and if you are looking to the positions obviously we are seeing a lot of short.”
He further added, “There might be some value based buying coming in it might be only in the early Rs 200 odd levels. So Rs 200 to possible Rs 210-212 might still be a level where we might see some buying which happens to be from the cash side to happen in Tata Motors. So I would still avoid it or if I am holding a short position, I would still carry it forward with a stop loss – I guess it is somewhere close to Rs 234 now, so I would hold it with a stop loss of Rs 248 and expect somewhere close to Rs 212 on that.”