Tata Motors Share Price may come down by Rs 990, see what are the updates today
As of the latest trading session, Tata Motors shares were priced at ₹976.30, down from the previous close of ₹1,038.70, marking a decrease of 5.75%. The stock has seen a notable 52-week range, hitting a high of ₹1,179.00 on July 30, 2024, and a low of ₹608.30 on October 4, 2023. The company’s market capitalization stands at approximately ₹345,261 crores, with a Price-to-Earnings (P/E) ratio of 10.23, indicating its valuation relative to earnings.
Main Points
For traders and investors, understanding the critical support and resistance levels is essential. The following levels are currently significant for Tata Motors:
- Resistance Levels: ₹1,050, ₹1,100
- Support Levels: ₹950, ₹900
These levels will be crucial for market participants looking to make informed decisions based on price movements.
Recent News Impacting Tata Motors
On September 11, 2024, UBS issued a ‘Sell’ recommendation for Tata Motors, citing concerns over the company’s luxury arm, Jaguar Land Rover (JLR). The brokerage expects a potential downside of 20% from the current price, setting a target of ₹825. This recommendation is based on a decline in demand for JLR’s premium models, which have previously driven up the average selling price and margins for Tata Motors.
Launch of EV Price Cuts
In a strategic move to boost sales, Tata Motors recently announced significant price cuts across its electric vehicle (EV) lineup as part of its “Festival of Cars” campaign. This initiative aims to make EVs more accessible and encourage adoption in India. The promotion includes discounts of up to ₹2.05 lakh and six months of free charging at Tata Power stations, enhancing the appeal of its EV offerings.
Broader Market Trends
Market analysts are observing a shift towards defensive plays in the stock market, with Tata Motors being part of this trend. The automotive sector is facing challenges, particularly in the commercial vehicle segment, which has shown signs of weakness. Analysts suggest that while Tata Motors has a robust portfolio, the current market dynamics may require cautious investment strategies.
Performance Expectations for Today
Given the recent downturn and the UBS downgrade, market sentiment around Tata Motors appears bearish. Investors should closely monitor trading volumes and price movements throughout the day. If the stock breaches the support level of ₹950, it may indicate further declines. Conversely, a rally above ₹1,050 could signal a potential recovery.
Key Metrics to Watch
- Volume: Increased trading volume can indicate strong investor interest or panic selling.
- Market Sentiment: Keep an eye on news related to JLR and the overall automotive market, as these can significantly impact Tata Motors’ stock performance.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
