Tata Motors Share Price Touches 52-Week Low at Rs 666; Positive Breakout above Rs 685
Tata Motors share price touched another 52-week low in today's session as selling pressure continued in Indian markets. FIIs have been net sellers during the last few weeks and market sentiment has turned bearish. Tata Motors touched yearly lows last week as well. There can be a recovery in Tata Motors but that would required overall market sentiment to turn positive or neutral. During the last six months, Tata Motors has declined 38 percent. Long term investors should keep a close watch on Tata Motors to buy at good levels for long term portfolio growth. Tata Motors is investing heavily in new electric vehicles and we could see the company witnessing better sales in some of the EV segments in India.
Stock Performance Overview
As of February 25, 2025, Tata Motors' stock exhibits the following metrics:
| Metric | Value |
|---|---|
| Open | ₹670.00 |
| High | ₹676.60 |
| Low | ₹666.00 |
| Market Capitalization | ₹2.46 Lakh Crore |
| Price-to-Earnings (P/E) Ratio | 5.86 |
| Dividend Yield | 0.45% |
| 52-Week High | ₹1,179.00 |
| 52-Week Low | ₹666.00 |
Technical Analysis
Candlestick Patterns
A review of Tata Motors' daily candlestick charts reveals:
Recent Pattern: The formation of a Doji pattern indicates market indecision, suggesting potential trend reversal or continuation.
Previous Trends: The emergence of Bearish Engulfing patterns has preceded downward movements, while Bullish Harami patterns have signaled potential uptrends.
Fibonacci Retracement Levels
Applying Fibonacci retracement from the 52-week low of ₹666.00 to the high of ₹1,179.00 yields key levels:
23.6% Retracement: ₹1,055.17
38.2% Retracement: ₹941.50
50% Retracement: ₹922.50
61.8% Retracement: ₹903.50
76.4% Retracement: ₹789.83
The stock is currently trading below the 76.4% retracement level, indicating potential support around ₹789.83.
Support and Resistance Levels
Identifying critical price points:
Immediate Support: ₹665.75 – A breach below this could signal further declines.
Immediate Resistance: ₹684.60 – Surpassing this may pave the way for upward momentum.
Actionable Insights
Bullish Scenario: If the stock maintains above the ₹665.75 support and breaks through the ₹684.60 resistance, it could target the ₹789.83 Fibonacci level, aligning with analyst target prices.
Bearish Scenario: A decline below ₹665.75 may lead to further downside, with the next support around ₹650.00.
Investment Outlook and Conclusion
Tata Motors’ favorable technical indicators, coupled with positive analyst projections, suggest a promising future for the stock. The company’s strong market position, global presence, and investments in electric vehicles present a compelling case for investment. However, investors should consider the stock’s support and resistance levels, monitor market conditions, and evaluate Tata Motors’ performance relative to its peers to make informed investment decisions.
