Tata Motors shares fell 12% in a month; will this 'bearish' trend continue?
Tata Motors share price: The stock slipped 1.29 per cent to close at Rs 962.40. At this price, it has declined 11.53 per cent in a month and 18.38 per cent from its record high value of Rs 1,179.05.
- Sep 18, 2024,
- Updated Sep 18, 2024 6:04 PM IST
Shares of Tata Motors Ltd extended their fall for the third consecutive session on Wednesday. The stock today slipped 1.29 per cent to close at Rs 962.40. At this price, it has declined 11.53 per cent in a month and 18.38 per cent from its record high value of Rs 1,179.05, a level seen on July 30, 2024. Despite the mentioned fall, the scrip has delivered a 21.75 per cent return to investors on a year-to-date (YTD) basis as against a 14.77 per cent rise in benchmark BSE Sensex during the same period.
The company recently informed bourses that TML Securities Trust has sold 1,14,97,462 new ordinary shares (NOS) on the stock exchanges for distribution of fractional share entitlement to DVR shareholders as well as towards tax liabilities, as per the scheme of arrangement.
Tata Motors said it would intimate the 'A' ordinary shareholders individually as well as to the stock exchanges upon the distribution of cash as well as credit of NOS. Tata Motors DVR shares were suspended for trading at exchanges on September 1.
The carmaker's shares have been in a consolidation phase during the recent past and its margins may continue to remain under pressure in the next couple of quarters due to increased inventories with the dealers, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
On the technical front, near-term support on the counter could be seen in the Rs 960-940 range. And, a decisive breach above Rs 995-1,012 levels is required for further upside. A few analysts suggested the stock looked 'bearish' on charts, indicating growing pessimism.
"The stock has experienced a significant drop from its recent high of Rs 1,142, pushing the technical indicators into oversold territory. On the level-specific front, Rs 940 is likely to be seen as pivotal support. On the higher end, the bearish gap of Rs 1,011-1,032 is likely to act as resistance and a decisive surge could only bring the mojo back for the bulls," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Tata Motors has been making lower tops on daily charts, indicating growing pessimism. In the near term, the stock could slip towards Rs 900 level. On the upside, resistance will at Rs 981, said Rupak De, Senior Technical Analyst at LKP Securities.
"The stock is bearish but also slightly oversold on daily charts with strong resistance at Rs 995. A daily close below support of Rs 958 could lead to a downward target of Rs 935 in the near term," said Sebi-registered research analyst AR Ramachandran.
"Support will be Rs 960 and resistance at Rs 1,012. A decisive close above Rs 1,012 level may trigger a further upside towards Rs 1,050. The expected trading range will be between Rs 930 and Rs 1,050 for the short-term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.
As of September 1, 2024, promoters held a 41.86 per cent stake in the carmaker.
Shares of Tata Motors Ltd extended their fall for the third consecutive session on Wednesday. The stock today slipped 1.29 per cent to close at Rs 962.40. At this price, it has declined 11.53 per cent in a month and 18.38 per cent from its record high value of Rs 1,179.05, a level seen on July 30, 2024. Despite the mentioned fall, the scrip has delivered a 21.75 per cent return to investors on a year-to-date (YTD) basis as against a 14.77 per cent rise in benchmark BSE Sensex during the same period.
The company recently informed bourses that TML Securities Trust has sold 1,14,97,462 new ordinary shares (NOS) on the stock exchanges for distribution of fractional share entitlement to DVR shareholders as well as towards tax liabilities, as per the scheme of arrangement.
Tata Motors said it would intimate the 'A' ordinary shareholders individually as well as to the stock exchanges upon the distribution of cash as well as credit of NOS. Tata Motors DVR shares were suspended for trading at exchanges on September 1.
The carmaker's shares have been in a consolidation phase during the recent past and its margins may continue to remain under pressure in the next couple of quarters due to increased inventories with the dealers, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
On the technical front, near-term support on the counter could be seen in the Rs 960-940 range. And, a decisive breach above Rs 995-1,012 levels is required for further upside. A few analysts suggested the stock looked 'bearish' on charts, indicating growing pessimism.
"The stock has experienced a significant drop from its recent high of Rs 1,142, pushing the technical indicators into oversold territory. On the level-specific front, Rs 940 is likely to be seen as pivotal support. On the higher end, the bearish gap of Rs 1,011-1,032 is likely to act as resistance and a decisive surge could only bring the mojo back for the bulls," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Tata Motors has been making lower tops on daily charts, indicating growing pessimism. In the near term, the stock could slip towards Rs 900 level. On the upside, resistance will at Rs 981, said Rupak De, Senior Technical Analyst at LKP Securities.
"The stock is bearish but also slightly oversold on daily charts with strong resistance at Rs 995. A daily close below support of Rs 958 could lead to a downward target of Rs 935 in the near term," said Sebi-registered research analyst AR Ramachandran.
"Support will be Rs 960 and resistance at Rs 1,012. A decisive close above Rs 1,012 level may trigger a further upside towards Rs 1,050. The expected trading range will be between Rs 930 and Rs 1,050 for the short-term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.
As of September 1, 2024, promoters held a 41.86 per cent stake in the carmaker.