Shares of Tata Elxsi Ltd Ltd fell for the sixth straight session on Monday amid a rally in the broader market. The Tata Group stock, which is in a correction mode in a period up to three years slipped 0.78% to a 52 week low of Rs 5196.05 on BSE today. In terms of technicals, the Tata Group stock is oversold on charts with a RSI of 25.4. Tata Elxsi shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
However, this year, the Tata Elxsi stock is down 23%, fell 32% each in six months and a year.
The large cap stock hit a 52 week high of Rs 9,082.90 on August 27, 2024.
In the current session, the stock opened flat at Rs 5237.30 on BSE today. Total 9686 shares of the firm changed hands amounting to a turnover of Rs 5.06 crore on BSE.
Tata Elxsi stock has a one-year beta of 0.9, indicating very low volatility during the period.
Jigar Patel from Anand Rathi said, "Support will be at Rs 5,145 and resistance at Rs 5400. A decisive move above the Rs 5,400 level may trigger a further upside of 5,650. The expected trading range will be between Rs 5,000 and Rs 5,650 for the short-term"
Morgan Stanley has maintained its 'Underweight' call on the firm with a fresh target price of Rs 5,400 from Rs 6,000 earlier.
Mandar Bhojane, Equity Research Analyst, Choice Broking said, "Tata Elxsi India is currently trading at Rs 5,185 and remains under selling pressure, forming a pattern of lower highs and lower lows, indicating a sustained bearish trend. The stock has declined by 51% from its all-time high and is now trading below the 20-day, 50-day, and 200-day EMAs, reinforcing a negative outlook. Additionally, the weekly chart has formed a bearish engulfing candlestick pattern, followed by a breakdown, which could accelerate the downward trend. The Relative Strength Index (RSI) stands at 30.54 and continues to decline, signaling increasing selling momentum. Looking ahead, the Rs 4,800–Rs 4,600 range is expected to act as a strong support zone, as these levels have historically attracted buying interest. If the stock stabilizes within this range, a potential rebound could be triggered. A breakout above the Rs 5,700 resistance level may indicate a reversal, potentially leading to an upside move towards Rs 6,200–Rs 6,600. However, a breakdown below Rs 5,000 may expose the stock to further selling pressure."
Riyank Arora, Technical Analyst at Mehta Equities said, "Tata Elxsi is in a continuous negative trend, with IT stocks remaining weak and under pressure. The stock is trading below all important moving averages, indicating sustained bearish momentum. If the selling pressure continues, it is likely to move towards Rs 4,600 in the near term. Any upside is expected to face strong resistance around Rs 5,700, making it a sell-on-rise candidate. Traders should focus on selling at higher levels as the overall sentiment remains negative."
SMC Global Securities said, "The stock hit a 52-week low, driven by long unwinding, and has been trading below its crucial moving averages, reflecting sustained bearish momentum. A fresh breakdown below the key support level of 5,700 further underscores the prevailing negative sentiment. Having breached the critical support level of Rs 5,700, the next immediate support is now anticipated at Rs 5,000. Any potential technical rebound is likely to encounter resistance in the Rs 5,400- Rs 5,600 range. If the selling pressure persists, the stock could trend toward the Rs 4,600 level in the near term. The broader trend is expected to remain bearish as long as the stock trades below the Rs 6,300 mark. Given the overall negative sentiment, traders are advised to consider selling at higher levels to capitalize on the downward momentum."
A R Ramachandran, SEBI registered Independent analyst says, "Tata Elxsi is oversold and also bearish on the Daily charts with strong resistance at Rs 5350. A Daily close below support of Rs 5133 could lead to a target of Rs 4785 in the near term."
Tata Elxsi is a subsidiary of Tata Sons, holding company of the Tata Group. It provides design and technology services across industries including automotive, broadcast, communications, healthcare, and transportation. The company aims to help customers reimagine their products and services through design thinking and the application of digital technologies such as IoT (Internet of Things), cloud, mobility, virtual reality and artificial intelligence.