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Shares of three Tata Group companies — Tata Motors, Tata Power and Tata Steel — slipped in Wednesday’s trade, in line with a fall in the broader market.
Technical charts largely have mixed views on the three Tata Group stocks. Tata Motors looked weak, said one analyst. Tata Steel, which has taken a breather could trade in a range, said the other analyst. Tata Power is also seen trading in a range, analyst views suggest.
Tata Motors
Tata Motors slipped for the fifth straight session today. The stock fell as much as 1.93 per cent to hit a day low of Rs 419.05. It eventually settled 1.68 per cent lower at Rs 420.10. A total of 7.76 lakh shares changed hands today on BSE, amounting to a turnover of Rs 32.70 crore. The company’s market capitalisation or m-cap stood at Rs 1,39,527.40. The stock has corrected 4.63 per cent in the last five sessions. On a year-to-date (YTD) basis, it has declined 15.61 per cent.
Osho Krishan, Sr. Analyst- Technical & Derivative Research, Angel One Ltd, said, “The automaker is hovering near the cluster of its major exponential moving average on the daily chart and is hustling to surpass the 200 SMA (Simple Moving Average) for quite some time, indicating tentativeness in the stock price. On technical parameters, the stock has strong support placed near Rs 390 odd levels, that historically has proved its mettle. While on the flip side, the immediate resistance is placed around Rs 440, and a decisive closure above the same could only dictate the next set of rally in the counter.”
Pavitraa Shetty from Tips2trades, said, “As expected, with inflation rates sustaining on the higher side thereby potentially leading to further interest rate hikes by both Federal Reserve and the RBI has led to a good correction in stocks, including the Tata group shares.”
She also opined that the stock “looks weak and a fall till Rs 402-406 looks possible with resistance at Rs 431.”
Amol Athawale, Deputy Vice-President – Technical Research, Kotak Securities Ltd, “In this week so far, the stock corrected over 3 per cent. From the last couple of months, it consistently witnessing profit booking at higher levels. As long as the stock is trading below 200-day SMA, the weakness is likely to continue. Below the same, it could slip till Rs 410-405. On the flip side, a fresh uptrend rally is possible only after the dismissal of 200-day SMA or above Rs 432. Above which, it could move up to Rs 450-460.”
Manoj Dalmia, Founder and Director, Proficient Equities Pvt Ltd, said, “Tata Motors has been under selling pressure for the last few sessions. Investors can avoid buying at current levels, instead, can accumulate it at lower levels of around Rs 380.”
Tata Steel
Tata Steel fell for the second consecutive session today. The stock dropped as much as 1.77 per cent to touch a day low of Rs 110.90. It finally closed 1.46 per cent lower at Rs 111.25. A total of 19.30 lakh shares changed hands today, amounting to a turnover of Rs 21.61 crore. The company’s market capitalisation or m-cap stood at Rs 1,35,855.78. However, the stock has climbed 2.49 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has declined 2.67 per cent.
Angel One Ltd’s Krishan, stated that the stock is nearing the breakout zone.
“Tata Steel has recently started gaining traction and breached its higher band of the consolidation channel, portraying a bullish breakout. The surge has been backed by decent volumes, supporting the optimistic view in the counter. At present, it has taken a breather and is nearing the breakout zone. The stock has a stiff resistance of the sloping trendline around Rs 116-118, and a decisive breakthrough could only set a new rally. On the flip side, the support base has shifted to Rs 108. Meanwhile, the stock is expected to hover within the mentioned range for the time being,” he said.
In contrast, Tips2trades’ Shetty stated that the stock “looks weak for now and a fall till Rs 103.8-105” could be possible in the coming days.
Kotak Securities Ltd’s Athawale said, “After a strong uptrend rally currently the stock witnessing profit booking at higher levels. However, the medium-term trend of the stock is still on the upside. For the traders now, 200-day SMA and 20-day SMA or Rs 108 would act as a strong support zone. If the stock succeeds to trade above the same, then it could retest the level of Rs 116. Further upside may also continue which could lift the stock to Rs 120. However, below Rs 108 uptrends would be vulnerable.”
Proficient Equities’ Dalmia said, “Metal stocks have been seeing some momentum in the last few sessions and Tata Steel has gained about 10 per cent from its recent swing. Investors can accumulate at current levels for a target price of Rs 126 from current levels.
Tata Power
In the case of Tata Power, the stock shed as much as 1.44 per cent today to hit a day low of Rs 225.40. It finished 1.22 per cent lower at Rs 225.90. A total of 5.20 lakh shares changed hands today, amounting to a turnover of Rs 11.79 crore. The company’s market capitalisation or m-cap stood at Rs 72,182.72. However, the stock has inched 0.49 per cent higher in the previous five sessions. On a year-to-date (YTD) basis, it has climbed 1.21 per cent.
Angel One Ltd’s Krishan, said, “Tata Power has been in a consolidation zone for over a year and is hovering in a broad range of 30-40 odd points. On technical parameters, the support of Rs 210-200 augurs well for the buyers, while on the higher end, the zone of Rs 240-245 is a sturdy hurdle in the counter.
Tips2trades’ Shetty said that the stock “looks weak” for now and a fall to Rs 103.8-105 levels could happen in the near term.
Kotak Securities Ltd’s Athawale said, “Post short term correction, the stock has formed reversal formation on daily and intraday charts. Currently, it is witnessing non-directional activity, perhaps, traders are waiting for either side breakout. For the bulls, Rs 230 or 200-day SMA would be the important breakout level to watch. And, if it manages to close above the same, we can expect a quick uptrend rally towards Rs 250-260. On the flip side, trading below Rs 222 or 50-day SMA may increase further weakness up to Rs 215-210.”
Proficient Equities’ Dalmia said, “Tata Power has been range bound in the last few weeks. Investors won’t see much movement in the short-term. A target of Rs 247 from current levels can be expected, where it can face some resistance. A mid-term target of Rs 297 can be expected.”
