Tata Motors shares stuck in bear grip but analysts are bullish, here's why 

Shares of Tata Motors Ltd are stuck in the bear grip in the short term. Tata Motors stock has lost 28% in the last six months dragged by weak Q3 earnings and Jaguar Land Rover's (JLR) weak show in UK and China. The near-term price action has been mildly positive with the stock gaining 7% in a week. However, the large cap stock is still down 40.53% from its 52-week high of Rs 1179.05 on July 30, 2024.

The stock has fallen 27% in a year.

In the current session, Tata Motors shares rose 1.43% to Rs 700 on BSE. Market cap of the Tata Group firm stood at Rs 2.57 lakh crore. The stock has a one-year beta of 1.2, indicating very high volatility during the period.

Technical analysts are mostly bullish on the outlook of the stock.

Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One said, "Tata Motors has recently transitioned out of a consolidation phase. This shift is highlighted by its rise above the 21-DEMA, followed by 50 DEMA after a long period, signaling a departure from a period of low volatility. Moreover, the stock has seen traction from extremely oversold parameters and is placed in a comfortable zone from a risk-reward point of view."

"Given these factors, the stock is anticipated to continue its upward trajectory in the upcoming weeks. On the levels front, the subzone of Rs 650 is likely to cushion any shortcomings in the near period. Conversely, sustainable buying beyond the Rs 725 zone could provide fresh traction in the counter, resembling a counter trend for higher potential targets around Rs 770-800 in the near future," added Krishan.

Riyank Arora, technical analyst at Mehta Equities said, "Tata Motors is currently trading at Rs 698 with a bullish outlook. The stock has strong momentum, with an upside target of Rs 720 in the near term. Key support is at Rs 670, which also serves as a stop loss. A breakout above Rs 720 could drive further gains, while dips toward Rs 680- Rs 685 may offer fresh buying opportunities. Overall, the trend remains positive."

AR Ramachandran, SEBI registered Independent analyst said, "Tata Motors is bullish on the Daily charts with strong support at Rs 688. A Daily close above resistance of 710 could lead to a target of Rs 745 in the near term."

Emkay Global has a target price of Rs 950 on the stock and Motilal Oswal has a price target of Rs 755 on Tata Group stock.