Tata Motors share price just flipped a crucial resistance level

on Jun 9, 2023
  • Tata Motors stock price has jumped by over 700% from its 2020 low.
  • The company’s recent results showed that its business is booming.
  • The stock is about to flip its all-time high.

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Tata Motors (NSE: TATAMOTORS) share price is sitting pretty near its all-time high as the company’s performance continues improving. The shares were trading at ₹562.75 on Friday, a few points below its all-time high of ₹603.75. They have surged by more than 775% from the lowest level in 2020 and by over 45% this year.

Tata Motors strong performance

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Tata Motors is one of the biggest Indian companies. According to CompaniesMarketCap, the company has a market cap of over $24 billion, making it the 27th biggest company in the country. Tata Motors owns 104 companies, including Jaguar Land Rover, Tata Daewoo, TML Holdings, and Tata Body Solutions among others.

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Tata share price has done well this year, helped by the company’s strong financial results. The most recent results showed that Tata Motors revenue in the first quarter came in at ₹20,142 crores, up from ₹15,793 crores. While the cost of doing business rose in the same quarter, the company’s profitsbefore tax doubled to over ₹1,085 crore.

Tata Motors has done well, helped by robust sales in Indi, its biggest market. This performance has been helped by the country’s strong recovery. Its business is also seeing moderate performance in other markets like China and North America.

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The biggest concern for the company is its UK and European markets. Following the Brexit agreement, there are concerns about UK’s auto industry will survive because of the tariff and non-tariff barriers. While Tata Motors is still commited to the UK, analysts question whether UK is still an attractive place to build cars. 

Tata Motors share price forecast

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Tata Motors share price
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The weekly chart shows that Tata Motors stock price has been in a strong bullish trend in the past few months. And this week, the stock just made an important move by flipping the resistance at ₹536 into a support level. By moving above this price, the stock invalidated the double-top pattern that was forming.

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Further, the shares have jumped above the 50-week and 100-week exponential moving averages (EMA) while the Relative Strength Index (RSI) has jumped above the overbought level of 70, signaling that the shares still have momentum,

Therefore, there is a likelihood that the stock will soon flip its all-time high as the momentum continues. If this happens, the shares could jump to ₹729, which is about 31% above the current level. A move below the support at ₹500 will invalidate the bullish view.

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