After robust sales in April, what does Tata Motors have to offer for investors?

After robust sales in April, what does Tata Motors have to offer for investors?

by 5paisa Research Team Last Updated: 2022-05-03T14:22:16+05:30

Recently, Tata Motors introduced to car lovers its new concept vehicle- Tata Avinya, which is expected to hit the roads in 2025.

Tata Motors registered a robust sales number for April 2022. The sales stood at 41587 units and grew by 66% YoY. With this, the EV line-up also received a warm response in the Indian market. Being a frontrunner in EV plans, Tata Motors hold a bright future for Electric vehicles in India.

On the technical chart, it is seen forming a pennant formation on the daily timeframe. It trades above its 200-DMA but trades below 20-DMA, 50-DMA, and 100-DMA. Since its previous swing low of Rs 376.35, the stock has seen huge buying interest and has surged about 15%. During this period, the volumes have been good, indicating buying interest of market participants in the stock. A solid breakout above the level of Rs 445 can see the stock inch towards the level of Rs 480 and beyond in the medium term.

The 14-period daily RSI (46.92) is in the sideways zone and indicates consolidation. The MACD line struggles to find momentum and hovers around the signal line. The On Balance Volume (OBV) is improving and volumes are expected to rise. The other momentum oscillators and technical parameters indicate mixed signals as the stock continues to consolidate for the past twelve days.

On a YTD basis, the stock has plunged about 10% as against Nifty Auto which has generated flat returns. The company is expected to post good quarterly results this season and thus has the potential to attract investors. The company possesses strong growth aspects and thus, is attractive for investments. The mutual fund houses and domestic institutions have been actively increasing their stake in the company for the past few quarters. Investors should consider this stock in their portfolio after appropriate analysis.

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