As of September 30, 2023, at 12:00 PM, Tata Motors shares are trading at a price of ₹979.5, reflecting a decline of 1.3% from the previous closing price. The broader market, as indicated by the Sensex, is seeing a downturn as well, trading at ₹84,607.33, down by 1.13%. The stock has experienced a daily range, hitting a high of ₹997.75 and a low of ₹977.
Technical Analysis
From a technical standpoint, Tata Motors is currently trading above its 200-day Simple Moving Average (SMA), yet it is positioned lower than the 5, 20, 50, and 100-day SMAs. This indicates that while the stock maintains a longer-term bullish trend, short-term signals are mixed. The key support level is identified at the 200-day SMA, while resistance levels are found at the 5, 20, 50, and 100-day SMAs.
SMA Overview
The significance of the SMA in trading is crucial, as it helps identify price trends based on historical data. The specific SMA values can provide insight into potential entry and exit points for traders.
Pivot Level Analysis
Daily pivot level analysis reveals that Tata Motors has key resistance points at:
| Resistance Levels |
|---|
| ₹997.0 |
| ₹1004.0 |
| ₹1008.0 |
Conversely, the key support levels are:
| Support Levels |
|---|
| ₹986.0 |
| ₹982.0 |
| ₹975.0 |
Trading Volume Insights
Up until noon today, trading volume for Tata Motors on the NSE and BSE increased by 50.16% compared to the previous trading session. Volume is a critical metric that, when analyzed alongside price movements, can indicate the sustainability of a trend. An increase in price accompanied by higher volume may suggest a strong upward trend, while falling prices with rising volume could hint at further declines.
Market Sentiment
Current market indicators suggest initial signs of a potential trend reversal following a recent downtrend in Tata Motors shares. This could provide an opportunity for investors seeking to capitalize on any future upward movement.
Fundamental Analysis
From a fundamental perspective, Tata Motors boasts a Return on Equity (ROE) of 48.22%, showcasing strong profitability compared to its equity. The Price-To-Earnings (P/E) ratio currently stands at 8.56, indicating that the stock may be undervalued relative to its earnings.
Investment Outlook
The median one-year forecast indicates an upside potential of 20.55%, with a target price projected at ₹1180.76. This forecast suggests that investors might find favorable returns if shares are held for the long term.
Shareholding Structure
According to the latest filings for the September quarter, Tata Motors has a promoter holding of 41.86%, with mutual funds holding 4.52% and Foreign Institutional Investors (FIIs) at 18.12%. This diverse shareholding structure can provide a sense of stability and confidence among investors.
Trends in Mutual Funds
Notably, mutual fund holdings in Tata Motors have decreased from 5.16% in June to 4.52% in September, indicating a shift in investor sentiment or reevaluation of the stock’s potential.
Foreign Institutional Investment Trends
Similarly, FIIs have slightly adjusted their holdings, decreasing from 18.18% in June to 18.12% in September, reflecting a cautious approach amidst current market volatility.
Current Market Standings
Today, Tata Motors shares are down by 1.3% at ₹979.5, contrasting with its mixed-performing peers. While companies like Maruti Suzuki India, Ashok Leyland, Jupiter Wagons, and Force Motors are experiencing declines, other peers are witnessing gains. Additionally, benchmark indices Nifty and Sensex are down by 1.1% and 1.13%, respectively, indicating a challenging trading environment.
