Shares of Tata Motors Ltd have declined 9.93 per cent from its all-time high value of Rs 1,179.05, a level seen last month on July 30. The stock was last seen settling 0.80 per cent up at Rs 1,062 on Wednesday. At this closing price, it has climbed 34.35 per cent on a year-to-date (YTD) basis.
In an interaction with Business Today at the sidelines of Tata Curvv.ev launch, Shailesh Chandra, MD of Tata Motors Passenger Vehicle and Tata Passenger Electric Mobility Ltd, said Tata Motors will be exploring opportunities such as better supply chain security after the group unveiled the chip manufacturing plant in Assam recently.
"Going forward, we'll explore [collaboration] between the two companies (Tata Motors and Tata Group). The opportunities for us to have a better supply chain security for Tata Motors," Chandra stated.
A few analysts said the counter witnessed some consolidation after hitting its lifetime high levels. Investors with a medium- to long-term view can consider holding on to the stock.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "Tata Motors is witnessing some consolidation after touching all-time high levels. With its new launches, the company is making a strong formidable presence in EV story in India. One can hold on to the stock but the interesting theme is after the listing of Hyundai Motors, how the valuations look in comparison. It looks interesting for OEMs (original equipment manufacturers). Investors can hold it with a medium- to long-term view."
Hyundai Motor India (HMIL), the country's second-largest passenger carmaker, is gearing up for an initial public offering (IPO). And, Tata Motors is India's third-largest automaker.
Although Hyundai has not announced any specific date for its IPO yet, sources indicate that HMIL, a 100 per cent subsidiary of Hyundai Motor Company (HMC), might make its market debut as early as 2025.
Technically, immediate support for Tata Motors' counter could be seen at Rs 1,020. With that being said, near-term resistance may be found at the Rs 1,080 zone. And, a decisive breach above the said resistance level is required for more upside.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has taken support near the Rs 1,020 zone, indicating a pullback. With some consolidation witnessed, it is hovering near Rs 1,060 level. And, a decisive breach above Rs 1,080 can trigger an upward movement for initial targets of Rs 1,150-1,170 levels in the coming days. Simultaneously, a decisive close below Rs 1,030 can weaken the overall trend and trigger a further slide towards 980 levels."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, echoed similar near-term support and resistance levels. "Support will be at Rs 1,020 and resistance at Rs 1,080. A decisive close above Rs 1,080 may trigger a further upside towards Rs 1,140. The expected trading range will be between Rs 1,000 and Rs 1,150 for the short-term," Patel stated.
Meanwhile, Indian equity benchmarks will remain closed on Thursday (August 15) to mark Independence Day. The domestic bourses will reopen on August 16, 2024 (Friday).