In Wednesday’s trading session, Tata Motors Ltd.’s shares resumed their declining trend and fell below the crucial Rs. 1,000 barrier. At the close of business, the shares fell 5.83 percent to Rs 975.05. Its current price is a 17.30% decrease from its peak value of Rs 1,179.05, which was reached on July 30, 2024.
10.95 lakh shares of the scrip were spotted crossing hands on the BSE today, indicating a high trading volume for the stock. The amount was double the 4.23 lakh share two-week average volume. With 108.14 crore in turnover, the counter had a market capitalisation (m-cap) of Rs 3,59,834.89 crore.
UBS, a global broking, kept its “Sell” recommendation on the stock with a target price of Rs 825 per share. Given that JLR’s order backlog is already lower than it was before COVID-19 struck and that incremental bookings are trailing supply, we wouldn’t be shocked if the incentives for Range Rover, the company’s top model, quickly begin to rise from almost no levels. Even if consensus extrapolates the prior two years’ performance, rising discounts, decreasing growth, and the absence of any new ICE/hybrid launch might lead to much poorer financials for FY26, according to UBS analysts.
After hitting all-time highs, Tata Motors shares have been going through a consolidation phase. The growth in dealership inventories, which may have an impact on margins, is one of the main worries for auto OEMs in the medium- to short-term, according to WealthMills Securities Director of Equity Strategy Kranthi Bathini.
The second-biggest passenger car manufacturer in the nation, Hyundai Motor India (HMIL), is preparing for an initial public offering (IPO). Furthermore, Tata Motors is the third-biggest carmaker in India.
Technically, the counter may find support at Rs 975, then at Rs 960, Rs 950, and Rs 940.
“During the past several trading sessions, Tata Motors has experienced some correction. Additional weakening in the counter is sparked by the subsequent sell-off. The Rs 940-odd zone and the Rs 980-960 subzone surround the intermediate support. On the higher end, Osho Krishan, Senior Research Analyst-Technical & Derivatives at Angel One, stated that the Rs 1010–1030 area should now be viewed as a strong barrier in the same period.
“The stock appeared weak on the daily charts, and in the near future, it may move closer to the Rs 950 mark. ‘Buy-on-dip’ opportunities exist at about Rs 920, with an upside objective of Rs 1,000, according to Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
“The price of Tata Motors shares is bearish, but daily charts show that it is also marginally oversold, with firm resistance at Rs 1,035. Research analyst AR Ramachandran, who is registered with Sebi, stated that a daily closure below the support level of Rs 975 could trigger a short-term decline down the Rs 948 level.
According to LKP Securities Senior Technical Analyst Rupak De, the stock is showing a short-term negative trend.
Promoter ownership of the Tata Group company stood at 41.86 percent as of September 1, 2024.