Tata Motors shares were trading 2.78% lower at Rs 920.90 on the Bombay Stock Exchange (BSE) at 1:45 pm.
Tata Motors shares have declined for consecutive sessions.
New Delhi,UPDATED: May 16, 2024 13:59 IST
Written By: Koustav Das
Shares of Tata Motors have fallen over 11% in the past five trading sessions, signaling that the company’s stock may have entered a correction phase after it received mixed feedback from brokerages after Q4 results.
Tata Motors shares were trading 2.78% lower at Rs 920.90 on the Bombay Stock Exchange (BSE) at 1:45 pm.
In the past five trading sessions, the carmaker’s stock has fallen over 11% and over 7% in a month. This is in sharp contrast to the stock’s performance in the past six months and one year.
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But will the poor run continue? According to market experts and brokerages, Tata Motors stock could face some near-term resistance due to possibility of a demand slowdown.
Brokerage firm Emkay Global highlighted that Tata Motors' Q4 earnings were subdued, with minimal margin growth across its businesses despite increased volumes.
Nuvama Institutional Equities noted that the company's revenue and EBITDA were slightly below expectations due to weaker-than-anticipated performance in its India commercial vehicle (CV) and passenger vehicle (PV) divisions.
It also expressed concerns over Jaguar Land Rover's (JLR) order book, which decreased from 148,000 units in December to 133,000 units in March.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, told Business Today that the Tata Motors stock has declined roughly 11% from a high of Rs 1,050. Krishnan highlighted that the stock has formed a “bearish gap” on the daily charts.
Krishan added that the recent fall has led to a decisive correction on the technical parameters, which now subsides in a comfort zone.
“At the current juncture, a plunge below Rs 945 is likely to attract further weakness towards 920-910 levels. Hence, a pragmatic view is required in the counter for now. While on the higher end, a series of resilience can be seen at the Rs 990-995 range, followed by the unfilled gap of Rs 1,008-1,030 in the near period,” he added.
Analysts also noted that the stock has been more or less rangebound for the past eight weeks, and appears weak on the charts, but it could find support at Rs 900.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, told Business Today that Tata Motors stock could find support at Rs 900, with the resistance being Rs 1,050.
However, some analysts believe that at the current levels, the stock could witness further decline in the near term before gaining momentum.
While Tata Motors is going through a lean period on Dalal Street, the stock is up over 35% in the past six months and nearly 77% in a year.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Published By:
Koustav Das
Published On:
May 16, 2024
