Tata Motors share prices have witnessed a 42% year-to-date growth, closing at INR 562.20 on Friday. The stock touched its 52-week high level of INR 576.50, which was only 2.48% below its current level. The BSE saw approximately 4.75 lakh shares traded on Friday, which was lower than the average volume of 8.26 lakh shares over the past two weeks. The total business on the counter was INR 26.76 crore, with a market capitalization (Mcap) of INR 186,730.47 crore.
What do technical analysts say?
According to technical analysts, Tata Motors share prices may face resistance around its one-year high level of approximately INR 577. If it breaches this level, the stock may reach INR 600 in the short term. After that, it may touch INR 620. Analysts have also identified immediate support around INR 545. If the counter fails to hold this level, a downward trend may lead to INR 508.
50% return in five months
Jigar S Patel, Senior Manager of Technical Research at Anand Rathi Shares and Stock Brokers, suggested that the recent steps taken by Tata Motors could make the stock more attractive. It has already given a return of 50% in the last five months and is currently above the 200-day moving average of INR 453. Hence, a reversal is possible. Vaishali Parekh, Vice-President of Technical Research at Prabhudas Lilladher, suggested a slight decline with short-term booking along with support around INR 545.
How to get better returns?
A R Ramachandran of Tips2trades recommended booking profits at current levels as the stock is overbought and is showing a decline on the daily chart with strong resistance at INR 577. Investors should wait for a decline around INR 508 for better returns in the coming weeks. The stock has traded above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The counter’s 14-day relative strength index (RSI) was at 72.06, indicating overbought status. The company’s price-to-earnings (P/E) ratio is 68.13, and its price-to-book (P/B) value is 8.27.
(Note: Seek financial advice before investing in any stock.)
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