Tata Motors shares slip 7% in a month; should you enter at current levels?

Shares of Tata Motors Ltd were trading 0.43 per cent higher at Rs 974.60 in Monday's trade. At this price, the stock has fallen 6.90 per cent in the past one month. Despite the said drop, it has climbed 23.29 per cent on a year-to-date (YTD) basis.

Tata Motors has recently announced that its vehicle financing unit will merge with non-banking financial company Tata Capital in a share swap deal. Tata Capital, the financial services arm of the Tata Group, offers vehicle loans as well as home and education loans.

The company will hold a 4.7 per cent stake in the merged entity once the deal is completed.

In March, the carmaker said it will split into two listed companies, separating its commercial vehicle business from its passenger vehicle arm, which will house the lucrative Jaguar Land Rover (JLR) business.

On technical setup, analysts remained positive on the counter. Support could be seen at Rs 950 level.

"Investors can buy the stock at current levels," Rahul Shah, VP-Equity Advisory at MOFSL, told Business Today TV.

"The stock was underperforming for quite some time. Currently, it is looking good on daily charts along with a favourable risk-reward. We suggest buying the stock for an upside target of Rs 1,110, keeping stop loss placed at Rs 917," said Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher.

"The stock has given a consolidation pattern breakout on daily charts, suggesting a rise in optimism. In the short term, the trend might remain positive and the counter may reach Rs 1,020. On the lower end, support is placed at Rs 950," said Rupak De, Senior Technical Analyst at LKP Securities.

As of March 2024, promoters held a 46.36 per cent stake in the carmaker.