Morgan Stanley will buy 50 million shares (1.73 per cent stake) in Tata Motors on behalf of an undisclosed client on Tuesday. The shares will be bought at an upper cap of Rs 499.8 per share, nearly a 10 per cent premium to Monday’s closing price on BSE of Rs 454.55. At least three persons in the know said Tatas were the buyer to gain an edge in the EGM voting.
Source: http://www.business-standard.com/article/companies/tatas-buying-1-73-in-tata-motors-116121201032_1.html
My View:
What this could mean for the stock of Tata Motors, since nothing changes for the company, its a deal which is being done for the voting rights adjustment. Technically the stock looks to have a resistance at 480 and 502 levels. Best trade would be to stay out since buyers can get trapped on the upside thrust this news may bring about.
Below is the hourly chart of Tata Motors.
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