Tata Motors shares trading at 11-month low, oversold on charts; here's what brokerages say
Tata Motors share price today: The large cap stock has also turned weak, trading below the Rs 800 mark for the fifth consecutive session. In fact, the Tata Group stock is oversold on charts, signals its RSI which stands at 22.14.
- Nov 19, 2024,
- Updated Nov 19, 2024 9:59 AM IST
Shares of Tata Motors were trading at their 11-month low on Tuesday. The Tata Group stock, which hit intraday high of Rs 757.85 on December 28 last year rose to a high of Rs 791 in early deals today. Since December 28, the Tata Motors stock has traded above the Rs 757.85 mark on BSE. The large cap stock has also turned weak, trading below the Rs 800 mark for the fifth consecutive session.
In fact, the Tata Group stock is oversold on charts, signals its RSI which stands at 22.14. The stock is showing weak trend in terms of short term and long term. Tata Motors shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
At the current level, the stock is down 33% from its 52 week high of Rs 1179.05 reached on July 30 this year. The stock touched its 52-week low of Rs 670.60, a year ago on November 20.
Tata Motors stock has risen 369% in the last five years. However, the stock looks weak in the short term, falling 28%in three months.
Tata Motors stock managed to rise 15.49% in a year but fell 0.51% on a year to date basis.
On Tuesday, the stock was trading in the green, rising over 3% to Rs 791.80. Market cap of the firm rose to Rs 2.90 lakh crore in the current session. On BSE, 2.22 lakh shares changed hands amounting to a turnover of Rs 21.34 crore.
The stock has a one-year beta of 1.1, indicating very high volatility during the period.
Jigar S Patel, Technical Research Analyst, at Anand Rathi Shares and Stock Brokers is for dealing in Tata Motors stock with a cautious note in the near term.
"Tata Motors has experienced a significant decline, raising concerns about its technical position. From an indicator perspective, the DMI on the monthly chart is signalling caution. The ADX line is notably higher than both the positive and negative DMI lines, suggesting a potential shift in momentum. Additionally, a bearish divergence has appeared, further confirming a potential downward trend. A long-standing 4-year bull trendline has been violated on the monthly chart, indicating the possibility of further weakness. As we move forward, it is advisable to book profits on any decent bounce from here on, with support anticipated around Rs 700 and resistance near Rs 850. Given the technical indicators pointing towards a potential top formation, a correction could be expected in the next 1-2 months," said Patel.
Kotak Institutional Equities finds the Tata Motors stock Rs 1,050-worthy. The brokerage has cut its FY2025-27 EPS estimates for Tata Motors (lower volume and margin estimates for all the three business segments).
Shares of Tata Motors were trading at their 11-month low on Tuesday. The Tata Group stock, which hit intraday high of Rs 757.85 on December 28 last year rose to a high of Rs 791 in early deals today. Since December 28, the Tata Motors stock has traded above the Rs 757.85 mark on BSE. The large cap stock has also turned weak, trading below the Rs 800 mark for the fifth consecutive session.
In fact, the Tata Group stock is oversold on charts, signals its RSI which stands at 22.14. The stock is showing weak trend in terms of short term and long term. Tata Motors shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
At the current level, the stock is down 33% from its 52 week high of Rs 1179.05 reached on July 30 this year. The stock touched its 52-week low of Rs 670.60, a year ago on November 20.
Tata Motors stock has risen 369% in the last five years. However, the stock looks weak in the short term, falling 28%in three months.
Tata Motors stock managed to rise 15.49% in a year but fell 0.51% on a year to date basis.
On Tuesday, the stock was trading in the green, rising over 3% to Rs 791.80. Market cap of the firm rose to Rs 2.90 lakh crore in the current session. On BSE, 2.22 lakh shares changed hands amounting to a turnover of Rs 21.34 crore.
The stock has a one-year beta of 1.1, indicating very high volatility during the period.
Jigar S Patel, Technical Research Analyst, at Anand Rathi Shares and Stock Brokers is for dealing in Tata Motors stock with a cautious note in the near term.
"Tata Motors has experienced a significant decline, raising concerns about its technical position. From an indicator perspective, the DMI on the monthly chart is signalling caution. The ADX line is notably higher than both the positive and negative DMI lines, suggesting a potential shift in momentum. Additionally, a bearish divergence has appeared, further confirming a potential downward trend. A long-standing 4-year bull trendline has been violated on the monthly chart, indicating the possibility of further weakness. As we move forward, it is advisable to book profits on any decent bounce from here on, with support anticipated around Rs 700 and resistance near Rs 850. Given the technical indicators pointing towards a potential top formation, a correction could be expected in the next 1-2 months," said Patel.
Kotak Institutional Equities finds the Tata Motors stock Rs 1,050-worthy. The brokerage has cut its FY2025-27 EPS estimates for Tata Motors (lower volume and margin estimates for all the three business segments).