Tata Motors shares end below Rs 900 mark for seventh session; price targets, stop loss, technicals and more 

Shares of Tata Motors ended below the Rs 900 mark for the seventh straight session on Thursday. The Tata Group stock is oversold on charts, signals its RSI which stands at 27. The stock is showing weak trend in terms of short term and long term. Tata Motors shares stand lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

With today's fall, the auto stock is down 29.26% from its 52 week high. Tata Motors shares rose to their 52-week high of Rs 1179.05 on July 30, 2024. They touched their 52-week low of Rs 626.35, a year ago on November 1, 2023.

Tata Motors stock climbed 545.46% in the last five years.  However, the stock looks weak in the short term, falling 17%, 28%, 14.42% in six months, three months and a month, respectively.

Tata Motors stock managed to clock 5.52% and 32.71% returns on a year to date basis and in a year, respectively.

In two years, the stock reported gains of 102.16%.

On Thursday, the  stock closed 0.74% lower at Rs 834.10. Market cap of the firm fell to Rs 3.07 lakh crore in the current session. On BSE, 8.32 lakh shares changed hands amounting to a high turnover of Rs 69.56 crore.

The stock has a one-year beta of 1.1, indicating very high volatility during the period.

Brokerage Prabhudas Lilladher sees Tata Motors stock at Rs 1225 in a year. Stop loss can be fixed at Rs 770 level.

"The stock has witnessed a decent erosion since the last one month from the peak zone of Rs 1142 to move below the important 200 period MA of Rs 960 to currently consolidate and take support near the Rs 915 level of the long-term trendline zone. The RSI has almost arrived near the oversold zone and has been hovering near this area for quite some time with a gradual rise visible to improve the bias. With the risk-reward favourable and the chart technically looking very attractive, we anticipate for further rise and suggest buying the stock for an upside positional target of 1225 keeping the stop loss at Rs 770 level," said Prabhudas Lilladher.

Sharekhan has picked Tata Motors for a horizon of one year. It has assigned a price target of Rs 1,319 to the Tata Motors stock.

"Given JLR’s production constraint issue has already been guided and BMW’s guidance for EBIT margin cut in FY2025 was more of a company-specific issue, we maintain our BUY view on Tata Motors Limited (TML) with an unchanged price target of Rs 1,319 based on expectations of continued improvement in JLR, PV, and CV businesses as well as reduced net automotive debt," said Sharekhan.

The risk for Tata Group stock is that any slowdown or cyclical downturn in any location where the company has a strong presence can affect business and profitability, given its revenue is widely diversified, added Sharekhan.

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).