Tata Motors’ shares witnessed a volatile trading session on Monday, May 14th. After initially declining nearly 9% in the early trade, the stock recovered ground and ended the day with a 0.59% gain.
On the BSE, Tata Motors’ shares closed at Rs 965.2, up by Rs 5.65 or 0.59%. On the NSE, the scrip inched up by Rs 4.90 or 0.51% to close at Rs 964.65.
The morning session saw the shares trade higher by 0.3% at around Rs 962 on the BSE. However, the stock soon entered the red territory, falling by 0.3% to trade at Rs 957 apiece. It eventually recovered and turned positive around 11 am.
Despite the rebound, market analyst Manas Jaiswal advises investors to exercise caution. He notes that the stock remains below its crucial 50-day moving average, suggesting a potential downtrend. Jaiswal also states that there are no clear signs of a reversal in the technical indicators.
“While a support level exists around Rs 940, a break below this point could send the stock plummeting to Rs 910. It is recommended to wait for the price to climb above Rs 982 before considering a buy,” Jaiswal added.
The group company Tata Power also witnessed a positive movement, gaining 2.5% to trade at Rs 422 on the BSE.
Tata Motors’ share price declined below Rs 1,000 on Monday, as its Q4 results missed Street estimates, and brokerages retained a ‘Reduce’ position on the stock.
While the company’s net profit soared over threefold in Q4, it missed revenue and EBITDA estimates. Brokerages like Emkay Global and Novuma retained their ‘Reduce’ ratings, citing limited margin expansion across businesses, declining orderbook, and moderating outlook for domestic commercial vehicles and passenger vehicles.
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