Tata Motors Limited (TATAMOTORS) Stock - Complete Technical Analysis - Oct 14, 2024

Tata Motors Stock Analysis: Will it Bounce Back Key Levels & Insights

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Today's analysis of Tata Motors Limited reveals a mixed picture with the stock currently priced at 928.25, showing a Spinning Top candlestick pattern, indicating market indecision. The stock is trading about 21.27% below its 52-week high of 1179.0, achieved on July 30, 2024, and 49.27% above its 52-week low of 621.85 recorded on October 30, 2023.

Over the past five trading sessions, we have observed fluctuations with a significant low of 925.35 today. This aligns with the previous day's low of 928.50, suggesting potential support near the 925 level. Resistance seems to form around 943, as seen from the recent trading activity.

The Average Directional Index (ADX) at nearly 37 signals a strong trend, but the Relative Strength Index (RSI) below 36 indicates that the stock is currently in oversold territory. This could set the stage for a potential reversal if buying interest picks up. The Stochastic oscillator is also showing a similar oversold reading, reinforcing the idea that a bounce back could occur if momentum shifts.

Additionally, the stock is experiencing heightened volatility, as shown by the Average True Range (ATR), which reflects daily price movements averaging around 42.27. With recent inside candle patterns and fluctuating trading ranges, traders should be cautious of sudden price drops or surges. The volume weighted moving average is at 957.32, suggesting that price action below this level could indicate further weakness.

Overall, traders should monitor the immediate support at 925 and resistance at 943. If the stock manages to hold above 925, it could pave the way for a recovery towards higher resistance levels.