Posted on February 24, 2025, by Niftynews
Tata Motors Shares hit a 52-week low on Monday, February 24, 2025, amid weakness in the broader market. Tata Motors stock slipped by 1%, closing at ₹666, down from the previous day’s close of ₹672.90 on the BSE. The market cap of the Tata Group firm stands at ₹2.48 lakh crore, signaling a significant dip.
Technical Indicators Show Weak Momentum in Tata Motors Shares
Tata Motors stock is currently trading below all key moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day averages. This indicates a bearish outlook for Tata Motors shares. The Relative Strength Index (RSI) stands at 37.7, suggesting that the stock is neither oversold nor overbought, but momentum remains weak. The one-year beta of Tata Motors stock stands at 1.2, indicating high volatility over the past year.
Recent Stock Performance and Decline
The Tata Motors stock hit its 52-week high of ₹1,179.05 on July 30, 2024, but has experienced a significant decline ever since. Over the last six months, Tata Motors shares have dropped by 38%, and the stock has fallen by 28% over the past year. This decline in Tata Motors shares is concerning for investors who have seen a decrease in value despite the company’s long-term potential.
Expert Insights on Tata Motors Stock Outlook
- Jigar S Patel from Anand Rathi points out that support for Tata Motors stock lies at ₹660, while resistance is at ₹690. A decisive move above ₹690 may trigger an upside of ₹720 for Tata Motors shares in the short-term.
- Ameya Ranadive, Chartered Market Technician at StoxBox, advises investors to take a wait and watch approach. The stock remains in a downtrend, trading below key exponential moving averages (EMA), which further weakens momentum for Tata Motors stock. Ranadive mentions that traders should wait for a breakout or confirmation of support before entering any new positions. The MACD remains in negative territory, signaling a bearish sentiment for Tata Motors shares.
- Mandar Bhojane, Equity Research Analyst at Choice Broking, confirms that Tata Motors stock is in a downtrend, consistently forming lower highs and lower lows. The stock remains below the 20-day, 50-day, 100-day, and 200-day EMAs, acting as dynamic resistance levels. Immediate resistance lies at ₹695, with stronger resistance at ₹725. If the stock breaks these levels, a short-term relief rally may occur, but until then, the overall outlook remains bearish.
Key Levels to Watch for Tata Motors Shares
- Support: ₹660
- Resistance: ₹690 (short-term), ₹725 (medium-term)
- Downside Potential: If Tata Motors shares break below ₹650, the stock may face further downside toward ₹620.
Analysts’ Ratings and Targets for Tata Motors Stock
Several analysts have provided varying outlooks for Tata Motors stock.
- Incred Equities has assigned a reduce rating with a price target of ₹661, expressing concerns over JLR (Jaguar Land Rover) due to tariff challenges and volatile currency movements.
- Global brokerage CLSA upgraded Tata Motors shares, believing that the adverse near-term outlook offers an opportunity to enter the stock at favorable valuations. They have set a target price of ₹930 for Tata Motors stock.
- Emkay Global has set a target price of ₹950 for Tata Motors stock, while Motilal Oswal is more conservative with a target of ₹755. Their cautious approach is based on margin pressure and weak demand for JLR in the near term.
Conclusion: What Should Investors Do with Tata Motors Shares?
The stock of Tata Motors continues to face downward pressure, as evidenced by the 52-week low reached on February 24, 2025. With Tata Motors stock trading below all significant moving averages and showing weak momentum, investors are advised to adopt a wait-and-watch approach.
Experts suggest monitoring key support levels at ₹660 and resistance levels at ₹690 for any decisive movement. Investors should avoid entering new positions until a clear breakout above resistance is observed or support at ₹660 is confirmed. Traders are advised to stay cautious and keep a close eye on Tata Motors shares for any signs of a trend reversal before taking action.
