Tata Motors ( NS: ) shares are a top mid-term pick based on technical analysis, and the auto stock is expected to rise more than 12% in the near future.
Tata Motors reports that in September its total domestic sales rose 44% to 80,633 vehicles. The Mumbai-based automaker would have delivered 55,988 units to its dealers in September 2021. The company’s total domestic passenger car shipments rose 85% to 47,654 units last month from 25,730 units in September last year. Tata Motors Passenger Vehicles CEO Shailesh Chandra said the company achieved its highest ever monthly sales of 47,654 units last month, led by record sales of Nexon and Punch.
Tata leads India’s EV market, aided by government subsidies and high import duties, and the company intends to expand its electric PV portfolio from 3 EVs currently to 10 by FY26. The Tiago EV is aimed at existing electric car customers looking for a smaller car with premium features.
“With the recent launch of the Tiago EV, the company has opened up new vistas and is poised to drive the mass adoption of electric vehicles across the country. Going forward, we expect the Christmas season to witness strong retail sales on the back of improving the supply of electric vehicles,” he added.
The channel pattern on the daily chart “topped out at the trendline support at the 390 zones and signaled a pullback with improving bias”, “The chart is tempting as the Relative Strength Index (RSI) indicator also shows a trend reversal from the oversold zone and indicates huge upside potential. They in the coming days it is expected to rise much more.The stock has a support level of 390 and a movement of 460 upwards.
The Feb 2022 series is putting significant pressure on the stock. After reaching a new high of 537 levels, the stock is under intense selling pressure. The Feb 2022 series started at 508 RS and ended at 454.5 down 12.5% for the entire series. It had a high of 514.75 and a low of 405.45. Again, the stock opened the Mar 2022 range at Rs 452.95, touched a high of Rs 458.5 and a low of Rs 376.35 and closed at Rs 433.75, down over 4%. In April, May, June and July, stocks started consolidating at 440 levels, but in August 2022 they eventually broke through those levels, tested 500 levels and closed at 471 levels;
A decline of almost 14% occurred in September 2022, and the stock ended at 404 levels. The stock had no significant movement in the Oct 2022 series and closed at 410 levels. The Nov 2022 series may test and consolidate again at 450 levels, with 390 levels providing good support.