Shares of Tata Motors Ltd fell to their 52-week low for the second straight session on Tuesday. Amid the ongoing correction, Tata Motors stock has fallen 44% from its 52-week high reached last year. The stock hit a 52-week high of Rs 1,179.05 on July 30, 2024. However, rising concerns over JLR's business and below estimates Q3 earnings have adversely affected the stock in the short term. It has lost 39% in six months and fallen 29.07% in a year.
In the current session, Tata Motors stock slipped to a low of Rs 663.10 against the previouse close of Rs 668.20. on BSE. Market cap of the Tata Group firm stood at Rs 2.44 lakh crore.
Despite the ongoing correction, the RSI of Tata Motors stock stands at 36.5 indicating it is trading neither in an oversold nor in overbought zone. The stock is weak in terms of technicals as it is trading below the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
The stock has a one-year beta of 1.2, indicating very high volatility during the period.
Jigar S Patel from Anand Rathi said, "Support will be at Rs 660 and resistance at Rs 690. A decisive move above the Rs 690 level may trigger a further upside of Rs 720. The expected trading range will be between Rs 660 and Rs 720 for the short-term."
Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox advises investors to wait and watch before making any move on the counter.
"Tata Motors has witnessed a significant correction from its 52-week high, currently trading around ?674.10. The stock remains in a downtrend, as indicated by its position below key exponential moving averages (EMA 20/50/100/200). The RSI stands at 38.13, reflecting weak momentum, while MACD remains in negative territory at -17.80, signaling bearish sentiment. The ADX at 27.92 suggests a moderately strong trend, with the DI- above DI+, reinforcing selling pressure. Despite recent attempts to find support near ?660-670, the stock lacks bullish confirmation. The presence of a sell signal on the 10 EMA CLoud and resistance around Rs 703-718 further indicates caution. Given the current setup, Tata Motors is in a 'no-trade zone,' where neither strong buy nor sell signals are evident. Traders should wait for a decisive breakout above resistance or further confirmation of support before taking new positions. A 'wait-and-watch' approach is advised for now," said Ranadive.
Mandar Bhojane, Equity Research Analyst, Choice Broking said, "Immediate resistance is placed at Rs 695, followed by a stronger hurdle near Rs 725, aligning with the 50-day EMA. A breakout above these levels could signal a short-term relief rally, but until then, the overall outlook remains bearish. On the downside, Rs 650 serves as a key support level, and a breakdown below this mark could intensify selling pressure, dragging the stock toward the next major support at Rs 620. As long as Tata Motors remains below its key resistance levels and moving averages, the trend is expected to remain bearish. A sustained move above Rs 725 may indicate a potential trend reversal, while a breakdown below Rs 650 could open further downside potential toward Rs 620 or lower. Traders should closely monitor price action for any signs of a shift in trend before considering long positions."
AR Ramachandran, SEBI registered Independent analyst says, "Tata Motors is sideways to bearish on the Daily charts with strong support at Rs 666. A Daily close above the resistance of Rs 694 could lead to a target of Rs 751 in the near term."
Incred Equities has assigned a reduce rating with a price target of Rs 661 to the Tata Motors stock.
Tata Motors’ consolidated EBITDA in 3QFY25 fell 14% yoy but was up 6% qoq at Rs 155 bn, missing our estimate by 11% and Bloomberg consensus estimate by 3%, said Incred.
Incred Equities is bearish on the prospects of the firm's overseas arm JLR.
"With tariff challenges in global trade and volatile currency movement, JLR will be vulnerable, despite its improved product mix and new vehicle launch plans. Increased competition in India’s electric car and small truck segments are a cause of concern. We maintain our REDUCE rating on Tata Motors. Key upside risks: Success of new products and demand stimulus benefits," said Incred Equities.
On the other hand, global brokerage CLSA has given a rating upgrade to the auto stock as it believes an adverse near-term outlook has given scope to enter the counter at favourable valuations. It has assigned an outperform rating to Tata Motors stock with a price target of Rs 930.