Tata Technologies shares snapped their nine-session losing run on Wednesday. The stock settled 1.21 per cent higher at Rs 729.75. At this closing value, it has moved up 2.70 per cent from its record low level of Rs 710.60, seen in yesterday's trade.
The company reported a marginal decline in net profit in the December quarter (Q3 FY25), at Rs 169 crore, compared to Rs 170 crore in the year-ago period. Revenue from operations rose 2 per cent, year-on-year (YoY), to Rs 1,317 crore in Q3 FY25 as against Rs 1,289 crore in the corresponding period last fiscal.
A market expert said the counter is fully priced in at current levels adding that investors with a long-term view can continue to hold it. On the technical play, a few analysts largely suggested that Tata Technologies looked 'bearish' on daily charts, advising to "stay away" from the counter in the near term.
"Tata Technologies shares have been mostly in a downtrend after listing. The stock is fully priced-in at this point of time. The company's quarterly results have been flattish. Investors with a long-term view can hold on to the stock, given the company's strong pedigree and business prospects," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
"Tata Tech has been on a significant downward trend with no signs of recovery, indicating a strong bearish outlook. The 21-DEMA, located around the 770-780 zone, may act as an intermediate resistance level. Additionally, since it is at its lifetime low, there is no apparent technical support. It is advisable to stay away from this stock until there is a clear indication of a resurgence," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Support will be at Rs 700 and resistance at Rs 750. A decisive move above Rs 750 level may trigger a further upside towards Rs 800. The expected trading range will be between Rs 690 and Rs 800 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.
"Tata Technologies is bearish but also oversold on daily charts with next support at Rs 694. Investors should buy only if a daily close is above the resistance of Rs 751 which could lead the stock to an upside target of Rs 802 in the near term," said Sebi-registered research analyst AR Ramachandran.
The scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 39.44. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As of December 2024, promoters held a 55.22 per cent stake in the firm.