Tata Motors shares extend fall, still up 60% in 2023 so far; what's next: Rs 600 or Rs 700?

The ongoing bearish trend in the domestic benchmarks has also gripped Tata Motors Ltd shares. The stock continued to decline for the fourth session today. It fell 2.04 per cent to hit a day low price of Rs 624.85. At this price, the scrip has slipped 7.83 per cent from its 52-week high of Rs 677.90, a level seen on October 16 this month. Despite the mentioned drop, it has still gained around 60 per cent on a year-to-date (YTD) basis.

On technical setup, an analyst said the stock looked 'bearish'. Support on the counter could be seen at Rs 625, followed by Rs 620 and Rs 600 levels. On the higher side, resistance may be found between the Rs 670-678 zone.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said the sacrosanct support on the counter lies around Rs 600. "On the flip side, Rs 670-675 remains a daunting task in the current scenario. The undertone remains buoyant," Krishan stated.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Since the last 2–3 months, the counter has been trading in the range of Rs 600–680. At the current juncture, it is in profit-booking mode."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said the next support zone visible near Rs 615-620 levels. "The bias overall is still maintained positive and only a decisive breach below the Rs 600 zone shall weaken the trend," Koothupalakkal added.

DRS Finvest founder Ravi Singh said, "Tata Motors share price is witnessing a correction amid selloff in domestic benchmarks. The technical parameters are also suggesting a further weakness inherent in the counter. There is support around Rs 625 level, breaking which may it slip towards Rs 600."

AR Ramachandran from Tips2trades said the stock looked bearish on the daily charts with strong resistance at Rs 678.

The counter was trading lower than the 5-day, 10-, 20- and 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150-, 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 45.64. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 74.48 against a price-to-book (P/B) value of 9.43.

The scrip has an analyst target price of Rs 720, Trendlyne data showed, suggesting a potential upside of 15 per cent in a year. It has a one-year beta of 1.6, indicating high volatility on the counter.

 

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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