Indian automobile giant Tata Motors’ share price took a beating on Wednesday going down over 3% to hit an intraday low of ₹754 (£7).
The automobile company extended its losing streak at the bourses to the third straight session.
The Tata Motors’ share price has sunk over 23% in the past six months.
What are technical analysts saying?
“Tata Motors, after showing resilience at the crucial support level of ₹771, has succumbed to the ongoing weakness in the auto and ancillary sectors,” said Anshul Jain, head of research, Lakshmishree Investments & Securities.
He added that despite holding this level during previous corrections, the Jaguar Land Rover parent’s stock has finally breached this critical threshold, signalling bearish sentiment among investors.
As per Jain the sustained move below ₹771 could potentially trigger further downside, with the next significant support level seen at ₹659.
“Investors are advised to monitor this technical breakdown closely, as it could set the tone for Tata Motors’ medium-term trend,” he added.
“The stock is trading near its major support level of ₹750 and is showing signs of weakness in its price movement,” said Riyank Arora, technical analyst, Mehta Equities.
Arora added that a break below ₹750 could trigger a downside move toward potential targets of ₹700 and ₹680.
“A stop loss is advised near 800 for all existing short positions, as the stock continues its downward trajectory. An RSI (14) reading of approximately 32 indicates weak momentum, suggesting the stock is likely to decline further toward the mentioned levels,” he added.
Tata Motors November sales
Tata Motors reported a marginal increase in overall sales for November, with total volumes reaching 74,753 units, slightly up from 74,172 units in the same month last year.
Domestic sales rose by 1% to 73,246 units, compared to 72,647 units in November 2023.
Passenger vehicle (PV) sales, including electric vehicles (EVs), increased by 2%, totaling 47,117 units compared to 46,143 units in the year-ago period.
Within this segment, domestic PV sales, including EVs, also rose by 2%, reaching 47,063 units against 46,068 units last year.
However, the commercial vehicles (CV) segment witnessed a slight decline, with total sales falling by 1% to 27,636 units, compared to 28,029 units in November 2023.
JLR UK sales in November
Jaguar Land Rover (JLR) reported an 11% year-on-year decline in its UK retail sales for November 2024, with total registrations dropping to 5,558 units from 6,251 units in the same period last year.
Jaguar’s UK sales plummeted by 53% to 725 units in November, a decline attributed to the brand’s ongoing transition.
As part of its rebranding strategy, Jaguar announced a halt in the release of new vehicles to UK dealers until 2026, focusing instead on establishing itself as a maker of luxury electric sedans.
In contrast, Land Rover sales increased by 3% year-on-year to 4,833 units.
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