Shares of three Tata Group companies — Tata Motors, Tata Power and Tata Steel — slipped in Wednesday’s trade, in line with a fall in the broader market. Technical charts largely have mixed views on the three Tata Group stocks. Tata Motors looked weak, said one analyst. Tata Steel, which has taken a breather could trade in a range, said the other analyst. Tata Power is also seen trading in a range, analyst views suggest.
Tata Motors
Tata Motors slipped for the fifth straight session today. The stock fell as much as 1.66 per cent to hit a day low of Rs 420.20. A total of 5.22 lakh shares changed hands today on BSE, amounting to a turnover of Rs 22.03 crore. The company’s market capitalisation or m-cap stood at Rs 1,39,776.50. The stock has corrected 4.38 per cent in the last five sessions. On a year-to-date (YTD) basis, it has declined 15.39 per cent.
Osho Krishan, Sr. Analyst- Technical & Derivative Research, Angel One Ltd, said, “The automaker is hovering near the cluster of its major exponential moving average on the daily chart and is hustling to surpass the 200 SMA (Simple Moving Average) for quite some time, indicating tentativeness in the stock price. On technical parameters, the stock has strong support placed near Rs 390 odd levels, that historically has proved its mettle. While on the flip side, the immediate resistance is placed around Rs 440, and a decisive closure above the same could only dictate the next set of rally in the counter.”
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Pavitraa Shetty from Tips2trades, said, “As expected, with inflation rates sustaining on the higher side thereby potentially leading to further interest rate hikes by both Federal Reserve and the RBI has led to a good correction in stocks, including the Tata group shares.”
She also opined that the stock “looks weak and a fall till Rs 402-406 looks possible with resistance at Rs 431.”
Tata Steel
Tata Steel fell for the second consecutive session today. The stock dropped as much as 1.51 per cent to touch a day low of Rs 111.20. A total of 13.88 lakh shares changed hands today, amounting to a turnover of Rs 15.57 crore. The company’s market capitalisation or m-cap stood at Rs 1,35,977.89. However, the stock has climbed 2.72 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has declined 2.45 per cent.
Angel One Ltd’s Krishan, stated that the stock is nearing the breakout zone.
“Tata Steel has recently started gaining traction and breached its higher band of the consolidation channel, portraying a bullish breakout. The surge has been backed by decent volumes, supporting the optimistic view in the counter. At present, it has taken a breather and is nearing the breakout zone. The stock has a stiff resistance of the sloping trendline around Rs 116-118, and a decisive breakthrough could only set a new rally. On the flip side, the support base has shifted to Rs 108. Meanwhile, the stock is expected to hover within the mentioned range for the time being,” he said.
In contrast, Tips2trades’ Shetty stated that the stock “looks weak for now and a fall till Rs 103.8-105” could be possible in the coming days.
Tata Power
In the case of Tata Power, the stock shed as much as 1.44 per cent today to hit a day low of Rs 225.40. A total of 4.53 lakh shares changed hands today, amounting to a turnover of Rs 10.28 crore. The company’s market capitalisation or m-cap stood at Rs 72,326.51. However, the stock has inched 0.58 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has climbed 1.30 per cent.
Angel One Ltd’s Krishan, said, “Tata Power has been in a consolidation zone for over a year and is hovering in a broad range of 30-40 odd points. On technical parameters, the support of Rs 210-200 augurs well for the buyers, while on the higher end, the zone of Rs 240-245 is a sturdy hurdle in the counter.
Tips2trades’ Shetty said that the stock looked ‘weak’ for now and a fall till Rs 103.8-105 may happen in the near term.
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Meanwhile, Indian equity benchmarks traded lower today as investors digested consecutive rate hikes by the Reserve Bank. RBI raised interest rates by 35 basis points (bps) to 6.25 per cent after three back-to-back 50-bps moves to tame stubbornly high inflation.