Tata Motors Passenger Vehicles Ltd Hits Intraday Low Amid Price Pressure

Intraday Performance and Price Movement

The stock of Tata Motors Passenger Vehicles Ltd (Stock ID: 949886) recorded a day’s low at Rs 343.05, marking a decline of 2.98% from its previous close. This intraday low came amid a broader downward trend, with the stock closing the day down by 3.2%. The decline follows two consecutive days of gains, signalling a reversal in short-term momentum.

Volatility was pronounced throughout the trading session, with the stock exhibiting an intraday volatility of 28.32%, calculated from the weighted average price. This heightened price fluctuation underscores the unsettled trading environment surrounding the stock today.

Technical Indicators and Moving Averages

From a technical standpoint, Tata Motors Passenger Vehicles Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates sustained downward pressure and a lack of immediate technical support levels to arrest the decline. The stock is also trading close to its 52-week low, currently just 2.86% above the Rs 335.30 mark, which may be contributing to cautious investor behaviour.

Sector and Market Context

In comparison, the automobile sector has also faced headwinds, with Tata Motors Passenger Vehicles Ltd underperforming its sector by 3.07% today. The broader market, represented by the Sensex, opened flat but subsequently declined by 384.38 points, or 0.55%, closing at 83,110.11. The Sensex remains 3.67% below its 52-week high of 86,159.02 and has been on a three-week losing streak, down 3.09% over that period.

While the Sensex trades below its 50-day moving average, the 50DMA itself remains above the 200DMA, suggesting that the broader market is in a phase of consolidation rather than a full bearish trend. Nevertheless, the negative market tone today has weighed on Tata Motors Passenger Vehicles Ltd, which has seen sharper declines relative to the benchmark index.

Relative Performance Over Various Timeframes

Examining the stock’s performance over different periods reveals a consistent pattern of underperformance relative to the Sensex. Over the past day, Tata Motors Passenger Vehicles Ltd declined by 4.21%, compared to the Sensex’s 0.55% fall. The one-week and one-month performances also show the stock lagging behind, with losses of 3.72% and 3.98% respectively, versus the Sensex’s declines of 0.92% and 2.14% over the same periods.

More pronounced is the three-month performance, where the stock has fallen 14.59%, significantly underperforming the Sensex’s 1.00% decline. Year-to-date, the stock is down 7.84%, while the Sensex has dropped 2.48%. Over the one-year horizon, the divergence is stark, with Tata Motors Passenger Vehicles Ltd down 29.68% against the Sensex’s 8.47% gain.

Longer-term trends show a more positive picture, with the stock outperforming the Sensex over three and five years, gaining 36.76% and 111.73% respectively, compared to the Sensex’s 36.56% and 68.24%. However, the ten-year performance remains subdued relative to the benchmark, with the stock up 54.80% versus the Sensex’s 239.50%.

Mojo Score and Rating Update

MarketsMOJO assigns Tata Motors Passenger Vehicles Ltd a Mojo Score of 36.0, reflecting a cautious outlook. The company’s Mojo Grade was downgraded from Hold to Sell on 4 November 2024, signalling a deterioration in the stock’s quality and momentum metrics. The Market Cap Grade stands at 1, indicating a relatively lower market capitalisation rating within the evaluation framework.

This downgrade aligns with the stock’s recent price action and technical indicators, reinforcing the current price pressure and subdued market sentiment.

Market Sentiment and Immediate Pressures

The current trading session reflects a cautious market environment for Tata Motors Passenger Vehicles Ltd, with the stock’s proximity to its 52-week low and its position below all major moving averages contributing to subdued investor confidence. The broader market’s three-week decline and the Sensex’s inability to sustain gains have compounded the pressure on the stock.

Additionally, the stock’s underperformance relative to its sector and the benchmark index highlights sector-specific and company-specific factors influencing trading behaviour. The high intraday volatility suggests active repositioning by market participants, possibly driven by profit-taking after recent gains and a reassessment of near-term prospects.

Overall, the combination of technical weakness, relative underperformance, and broader market headwinds has culminated in the stock hitting its intraday low and closing with a notable decline.

Summary of Key Metrics

Tata Motors Passenger Vehicles Ltd closed at Rs 343.05, down 3.2% on the day, with an intraday low matching this level. The stock is 2.86% above its 52-week low of Rs 335.30 and has underperformed its sector by 3.07%. The Sensex closed at 83,110.11, down 0.55%, continuing a three-week losing streak. The stock’s Mojo Score stands at 36.0 with a Sell grade, reflecting current market caution.

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