Red Signal For Tata MotorsĀ 

Red Signal For Tata Motors 
Jaguar Land Rover’s Vehicle Manufacturing Plant in the U.K. (Photographer: Simon Dawson/Bloomberg)

Tata Motors Ltd., the only stock in the auto index that has fallen so far this year, may see fresh selling pressure.

Bloomberg's proprietary trender indicator has turned red for the owner of Jaguar Land Rover. The trender uses average true range for calculation and generates buy and sell signals once a stock breaches the range.

When the trender changes color from red to green, it's a buy signal, and a sell call if it changes from green to red.

At Wednesday's closing price, trender indicated a sell signal for Tata Motors. The stock is down 6 percent so far this year compared to a more than 22 percent gain in the S&P BSE Auto Index.

Historically, the trender turning negative has been the sign of a potential downside.

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