Tata Motors Passenger Vehicles Falls 4.32%: 3 Key Factors Driving the Weekly Decline

5 January: Positive Start Despite Sensex Dip

Tata Motors Passenger Vehicles Ltd began the week on a relatively positive note, closing at Rs.373.50, up 0.86% from the previous close. This gain came despite the Sensex declining 0.18% to 37,730.95, indicating initial resilience in the stock. The volume of 565,636 shares traded suggested moderate investor interest, setting a firm opening base for the week.

6 January: Heavy Trading and Put Option Activity Amid Price Correction

The stock witnessed significant trading activity on 6 January, with a volume of 788,554 shares and a turnover exceeding ₹251 crore, marking it as one of the most actively traded stocks by value. Despite this, the share price declined 1.23% to Rs.368.90, underperforming the automobile sector's modest 0.30% fall and the Sensex's 0.19% dip. Intraday, the stock touched a low of Rs.360.00, signalling a short-term correction after prior gains.

Notably, put option contracts at the ₹360 strike expiring on 27 January surged, with 4,625 contracts traded and an open interest of 5,205, reflecting growing bearish sentiment. The stock's technical position showed it trading above its 20-day moving average but below its 5-day, 50-day, 100-day, and 200-day averages, indicating weakening short-term momentum amid longer-term consolidation.

7 January: Continued Bearish Sentiment and Price Decline

The bearish momentum intensified on 7 January as Tata Motors Passenger Vehicles Ltd fell 1.50% to close at Rs.363.35, further underperforming the sector and Sensex. The stock remained the most active in put options trading at the ₹360 strike, with 3,591 contracts exchanged and open interest at 4,846 contracts. This surge in put activity underscored investor caution ahead of the 27 January expiry.

Intraday lows reached Rs.360.45, closely aligning with the critical ₹360 support level. The stock's technical setup remained mixed, trading above the 20-day moving average but below other key averages, signalling persistent short-term weakness. Delivery volumes rose sharply to 1.03 crore shares on 6 January, an 83.33% increase over the five-day average, indicating heightened investor participation and possible repositioning.

8 January: Market Volatility Weighs on Stock Price

The broader market volatility on 8 January, with the Sensex plunging 1.41% to 37,137.33, exerted additional pressure on Tata Motors Passenger Vehicles Ltd, which declined 1.09% to Rs.359.40. The stock's decline was in line with the market but continued its underperformance relative to the sector. The sustained selling pressure reflected ongoing concerns about sectoral challenges and the stock's technical resistance levels.

9 January: Week Ends on a Weak Note

The week concluded with Tata Motors Passenger Vehicles Ltd closing at Rs.354.30, down 1.42% on the day and marking a 4.32% decline for the week. The Sensex also fell 0.89% to 36,807.62, but the stock's sharper drop highlighted its relative weakness. The sustained put option activity and technical indicators suggest that the stock faces near-term headwinds, with the critical ₹360 support level breached intraday earlier in the week.

Daily Price Comparison: Tata Motors Passenger Vehicles Ltd vs Sensex

Key Takeaways

Robust Trading Volumes Amid Price Weakness: Despite a 4.32% weekly decline, Tata Motors Passenger Vehicles Ltd saw significant trading activity, particularly on 6 January with a turnover exceeding ₹251 crore. This indicates strong investor interest, though the price correction suggests profit booking or repositioning.

Heavy Put Option Activity Signals Bearish Sentiment: The surge in put options at the ₹360 strike price, with open interest exceeding 5,000 contracts, reflects growing caution and hedging ahead of the 27 January expiry. This concentration near a critical support level highlights potential downside risk.

Technical Indicators Point to Short-Term Weakness: The stock’s position above the 20-day moving average but below other key averages suggests a consolidation phase with short-term momentum fading. The breach of the ₹360 support intraday adds to near-term vulnerability.

Sector and Market Context: The automobile sector showed relative resilience compared to the stock’s sharper decline, indicating company-specific challenges. The broader Sensex fell 2.62% over the week, but TMPV’s underperformance by 1.70% emphasises its current weakness.

Conclusion

Tata Motors Passenger Vehicles Ltd’s performance in the week ending 9 January 2026 was marked by a notable decline of 4.32%, underperforming the broader market and its sector. The combination of heavy trading volumes, pronounced put option activity, and technical resistance levels paints a picture of cautious investor sentiment and potential near-term headwinds. While liquidity remains strong, the downgrade to a Sell grade and deteriorating Mojo Score reinforce the need for vigilance. Market participants should closely monitor price action around the ₹360 support level and expiry dynamics as the 27 January date approaches, as these factors will likely shape the stock’s trajectory in the coming weeks.

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