Shares of Tata Technologies, the Tata Group’s global engineering services firm, ended below the Rs 1,000 mark for the sixth straight session on Tuesday. The stock stands near the 52-week low of Rs 939.65, hit on November 18 this year. Tata Technologies shares have turned bearish both in the short term and the long term. The Tata Group stock is trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
In the current session, the stock closed 0.73% higher at Rs 948.40 against the previous close of Rs 941.50 on BSE.
Total 0.64 lakh shares of the firm changed hands amounting to a turnover of Rs 6.09 crore. Market cap of the firm rose to Rs 38,473 crore on BSE.
In terms of technicals, the relative strength index (RSI) of Tata Technologies stands at 29, signaling it's trading in the oversold zone.
Here's a look at what analysts said on the outlook of the stock.
AR Ramachandran, an independent Sebi registered analyst said, "Tata Technologies is bearish but also slightly oversold on the Daily charts with next support at Rs 897. Investors should buy only if Daily close is above resistance of Rs 997 for target of Rs 1120 in the near term."
Kushal Gandhi, Technical Analyst, StoxBox said, "The share price of Tata Tech seems to be experiencing a phenomenon commonly referred to as 'IPO disease.' This term describes the tendency of newly listed companies to undergo a substantial initial surge, which often dissipates within a few trading days. After a remarkable increase of approximately 17% on its listing day, the stock has since faced significant selling pressure and has declined nearly 33% from its peak, showing little to no signs of recovery. Technical indicators suggest bearish trends and a lack of momentum in the price action, compounded by poor earnings per share (EPS) and relatively weak strength compared to the broader market—an unfavorable development. Therefore, we advise against trying to 'catch a falling knife' in a declining market."
Kkunal V. Parar, Vice-President of Technical Research and Algo, Choice Broking said, "The stock is currently trading within a Downward Falling Channel formation on the daily chart, indicating a prevailing bearish trend with further downside potential. Additionally, the stock has broken below its recent support level, signalling the possibility of further declines in the near term. It is also trading below its 50-day moving average, which confirms the negative bias in the stock's trend. The RSI on the daily chart is now trending below the 30 level for the first time in a while, suggesting that the stock is in an oversold condition and reinforcing the likelihood of continued bearish momentum. Given this technical setup, we anticipate further downside movement in the stock, with potential support levels around Rs 881 to Rs 800. On the upside, resistance is seen at Rs 1040."