The Tata Motors case

When we are looking to filter out the best stocks to sell (or buy), the idea of diversification also comes into the equation. Components of the same sector usually show similar structures, this is why our aim is to diversify using the best or worst performers from separate sectors in order to further reduce risk.
Today we continue the analysis of our Early Economic shorts list with components of the Indian Auto sector. Tata Motors, Bajaj Auto and M&M are all on our list of best shorts. We plotted the relative Jisekis between the stocks and their sector index, BSEAUTO and also compared the stocks pair by pair. Each structure indicated that Tata Motors has been outperforming not only BSEAUTO, but also Bajaj Auto and M&M for a few months now (slide 1). The relative performance between Tata Motors and BSEAUTO suggests that the stock is ready to underperform its sector index (slide 3).


Alpha is a daily strategy signal product that gives trading and investment signals. Alpha is a numeric Ranking product based on TIME fractals. The signals are illustrated through tracker and running portfolios. Alpha can be used by fund managers for relative allocations, traders for leverage bets and high net worth clients for selective trades. Alpha is a part of the time triads analytics developed by Orpheus Research.
Coverage India: CNX100 traded stocks and Indian Indices.
Michesan Anna-Maria, Head of India Research. Anna discovered her interest of markets immediately after completing her graduate studies in Economics. She followed it up with post graduate studies in corporate finance. A host of research work in behavioral finance, option strategies and quantifying market sentiment followed. Anna covers Indian equity and combines Elliott, Time Fractals and Time Analytics to deliver accuracy across time frames. To review some of her work, check out the annual India accuracy report 2009.