Tata Motors Share Price Analysis – 1st October 2023
As of 12:00 PM on 1st October 2023, Tata Motors shares are trading at ₹981.5, reflecting a modest increase of 0.7% from the previous closing price. In the broader market context, the Sensex is hovering at ₹84367.51, marking a slight rise of 0.08%. Throughout today’s trading session, Tata Motors has experienced a price range with a high of ₹984.4 and a low of ₹975.25.
Technical Analysis
From a technical standpoint, Tata Motors is currently positioned above the 5, 10, and 300-day Simple Moving Averages (SMA), while trading below the 20, 50, and 100-day SMAs. This indicates a mixed short-term outlook where the stock is supported by shorter-term indicators but under pressure from longer-term averages. Key support levels are noted at the 5, 10, and 300-day SMAs, while significant resistance can be anticipated at the 20, 50, and 100-day SMAs.
Key Pivot Levels
The classic pivot level analysis reveals critical resistance levels lined up at ₹991.52, ₹1007.68, and ₹1017.62. Conversely, key support levels are identified at ₹965.42, ₹955.48, and ₹939.32. These levels are pivotal for short-term traders monitoring price movements.
Trading Volume Insights
As of 12 AM today, the trading volume on NSE and BSE for Tata Motors has been reported at a decrease of 14.89% compared to the previous trading session. Volume is a critical metric in assessing market trends, where positive price movement accompanied by increased volume provides signals of a sustainable upward trend, while negative price movements with high volume could suggest potential declines.
Overall Market Sentiment
Despite showing initial signs of bottoming out, it is advisable for investors to remain patient and wait for clear confirmation before embarking on bullish positions, indicating potential reversals in the stock’s trajectory.
Fundamental Analysis
From a fundamental perspective, Tata Motors boasts a robust Return on Equity (ROE) of 48.22%. The current Price-to-Earnings (P/E) ratio stands at 8.40, indicating a favorable valuation compared to its earnings. Analysts forecast a 1-year target price of ₹1180.00, suggesting a potential upside of 20.22% from the current price level.
Shareholding Patterns
As of the latest filings for the September quarter, Tata Motors has a promoter holding of 41.86%. Mutual Fund (MF) holdings have decreased from 5.16% in June to 4.52%, indicating some reduction in institutional confidence. Similarly, the Foreign Institutional Investors (FII) holding saw a slight drop from 18.18% in June to 18.12% in September.
Peer Comparison
The performance of Tata Motors on this trading day shows a 0.7% increase, while its peers display mixed results. Notably, Maruti Suzuki India has seen declines, whereas competitors such as Ashok Leyland, Jupiter Wagons, and Force Motors are showing positive movement. Collectively, benchmark indices like Nifty and Sensex remain up by -0.09% and 0.08% respectively.
Conclusion
In conclusion, Tata Motors presents a mixed bag of technical indicators and a fundamentally strong profile, suggesting potential for future growth. Investors should monitor the stock closely and take a measured approach in line with market trends and updates.
