Tata Motors: Tata Motors Limited shares have been falling continuously for nine sessions

Tata Motors: For the last nine sessions, Tata Motors Ltd.’s shares have been falling precipitously. After closing at Rs. 1119.65 on August 29, 2024, the Tata Group shares fell 11.21% to an intraday low of Rs. 990 in the current session. The big cap stock’s relative strength index (RSI) is at 41.4, indicating that despite the continuous decline, it has not reached the oversold zone.

Since October 4, 2023, when it reached a 52-week low of Rs 608.45, the stock has increased by 70.28%.

Tata Motors’ stock lost approximately 4% of its value during the current session on the BSE, giving up the Rs 1,000 mark to the present correction.

The multibagger stock had a prior closing of Rs 1038.60 today, but finished 0.30% down at Rs 1035.45 on Tuesday. On Wednesday, the company’s market value decreased to Rs 3.64 lakh crore. Approximately 2.42 lakh shares were traded on the BSE during the previous session, resulting in a transaction of Rs 24.16 crore.

Tata Motors’ stock reached a 52-week low of Rs 608.45 on October 4, 2023, and a record high of Rs 1179.05 on July 30 of this year.

The multibagger car stock has increased 234% over the last three years and 59.14% over the last year. With a one-year beta of 1, the stock of Tata Motors indicates fairly ordinary volatility during that time.

Technically speaking, Tata Motors’ relative strength index (RSI) was 41.4, indicating that it is neither trading in the overbought nor oversold areas.

Tata Motors’ stock is now trading higher than the 100-, 150-, and 200-day moving averages but lower than the 5-, 10-, 20-, 30 day, and 50-day moving averages.

Mandar Bhojane, Equity Research Analyst at Choice Broking, provided commentary on the company’s prospects throughout the current slump. “The stock is retesting its previous breakout level around Rs 1,040, which is acting as a key support level,” Bhojane said. The modest breakdown suggests that there is some short-term weakness, but generally the stock is still in a strong trend.

Tata Motors’ latest price decline approached both the 50-day Exponential Moving Average (EMA) and the lower limit of its Bollinger Band, both of which are offering further support. The fact that the stock is still trading above its 200- and 50-day moving averages is significant since it supports the longer-term positive view. The short-term goals are between Rs. 1,120 and Rs. 1,200. Building up to these amounts might be advantageous. This is a tempting opportunity for traders and investors alike, because the stock has shown tenacity inside its bullish framework even after some recent declines.”

According to Osho Krishan, Senior Analyst, Technical & Derivatives, Angel One, “Tata Motors had a significant correction that resulted in a drop to the daily chart’s 50-day EMA. Nevertheless, the stock has been showing a trend of higher highs and higher lows when looking at the larger time period.

Since the stock is in a vital zone and a breach of this level might upset the mood of the market, it is crucial to keep an eye on the Rs 1000 level. A significant rise above the Rs 1080–1100 level, however, would suggest a change in momentum in the right direction. Therefore, it’s important to maintain suitable risk management procedures while being watchful for the designated levels and reacting accordingly.”

“Tata Motors has extended its downtrend, marking a ninth consecutive session in decline,” said Om Mehra, Technical Analyst at SAMCO Securities. Following a consistent increase from Rs 1,008 to Rs 1,142, the stock has now entered a period of correction. A double bottom pattern is building on the daily chart, indicating that possible support could appear shortly.

The weekly volume decline suggests less market activity, and the daily RSI of 44 implies a neutral to negative bias consistent with the current price movement. This waning impetus suggests a careful course of action. On the other hand, a stronger risk-reward situation and a suitable entry point for long positions may be found around the Rs 1,000–Rs 1,020 region. The stock might rise into the Rs 1,100–1,130 range if it reverses from present levels.”