Tata Motors shares down 11% in a month; where is this carmaker's stock headed?

Shares of Tata Motors Ltd on Tuesday moved up 0.56 per cent to settle at Rs 977.10. At this price, the stock has slipped 10.53 per cent in the past one month. Despite the mentioned drop, it has gained 23.61 per cent on a year-to-date (YTD) basis as against a 17.49 per cent rise in benchmark BSE Sensex during the same period.

The carmaker today launched two new versions of Nexon - CNG model with a starting price tag of Rs 8.99 lakh and an electric variant starting at Rs 13.99 lakh. With these fresh launches, Tata said Nexon is the only car in the country available in four distinct powertrains – petrol, diesel, CNG and electric.

Kranthi Bathini, director of equity strategy at WealthMills Securities said Tata Motors has been in a consolidating phase. "At present, China's revival news is helping the carmaker as JLR (Jaguar Land Rover - a wholly-owned subsidiary of Tata Motors) derives a major amount of its revenues from China. So, we can see some buying interest in the medium- to short-term," Bathini stated. China's central bank announced its biggest stimulus measures since the pandemic to boost its flagging economy.

On the technical front, support on the counter could be seen in the Rs 950-940 zone. And, a decisive move above the Rs 984-1,036 is required for further upside potential.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Tata Motors has experienced a significant drop from its recent record high Rs 1,179.05. On the level-specific front, Rs 950-940 is likely to be seen as the pivotal support zone. On the higher end, the Rs 1011-1032 range is likely to provide resistance and a decisive surge could only bring the mojo back for the bulls."

Rupak De, Senior Technical Analyst at LKP Securities, said, "The stock is signalling a recovery as long as it stays above Rs 950. On the higher end, it is likely to move towards Rs 1,015 in the short term."

Sebi-registered research analyst AR Ramachandran said, "Tata Motors stock price is slightly bullish on daily charts with strong support at Rs 949. A daily close above resistance of Rs 984 could lead to an upside target of Rs 1,036 in the near term."

As of September 1, 2024, promoters held a 41.86 per cent stake in the Tata Group firm.