According to Siddharth Bhamre of Angel Broking, one may short Tata Motors at around Rs 500-505.
Siddharth Bhamre of Angel Broking told CNBC-TV18, "In auto space Tata Motors and Tata Motors DVR; DVR outperformed last month by 6 percent odd. Generally traders have the tendency that if last month DVR has outperformed, this month Tata Motors would outperform but looking at the data points and the correlation stats, I feel that the DVR would continue to outperform this month also to Motors. If you are thinking of generating an opposite trade where you are thinking of going long in Tata Motors and short in DVR, one should hold on to that trade and continue if you have that – short Tata Motors and long DVR – that trade has more steam left to generate trade."
"On standalone basis, Tata Motors is a good shorting candidate. So I would suggest that around levels of Rs 500-505 one can think of shorting Tata Motors in this space," he added.
"We do not have clear-cut view on Maruti Suzuki. In Mahindra and Mahindra (M&M) also we have seen formation of short positions but rather than getting into those names I will short Tata Motors. As far as two-wheelers are concerned, Bajaj Auto is a good shorting candidate over there," he said.