Tata Motors Share Price Prediction - 4th July

Today's Opening - 270

Today's High - 272

Today's Low - 266

Today's Closing - 267

Marginal negative closing today, with lowest volumes in the last eight sessions.

Tata Motors 180-Days MACD Trend

The 12, 26-day Moving Average Convergence Divergence (MACD) has been negative from 24th Jan onwards. After recovering in mid-June, MACD has again gone worse since 27th June. The 2-day Relative Strength Index has remained around 30 since 26th June.

The stock has been negative on the 20-day Commodity Channel Index (CCI) since 16th April. Though the CCI had managed to pull back during 7-22nd June, it again started dropping since 25th June.

Starting 15th May, the 14-day Negative Directional Index has been stronger than the Positive Directional Index since 15th May. The Positive Directional Index went higher than the Negative Directional Index during 8-22nd June. Post that again the Negative Directional Index has got the better of the Positive Directional Index. The stock has remained below the 5-day Exponential Moving Average since 14th June.

The company's domestic sales have grown by 54% in June compared to the same period last year. Also, the year on year export growth has been 50%. But Tata Motors' biggest pain point is JLR. The segments in which JLR operates are seeing a subdued global demand. Moreover, JLR has a huge CAPEX need. These are the two key reasons pulling Tata Motors down.

In my post on 1st June, I had mentioned that Tata Motors had a support at 279 and that 265 would be the next support level. The 279 support level has got broken. The stock is trying to take support at the 260-265 level. Having lost more than 12% over the past two weeks, the stock might show a minor bounce back. Do not read any positive closings as a sign of trend reversal. In case the support level of 260-265 gets broken, the stock might further drop to 249-250. Keep accumulating the stock on every dip with a long-term view.

If you find this analysis useful, you might also want to read through my latest posts on ONGC, BHEL and Bank of Baroda.