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Stocktwits - Tata Motors (NSE:TAMO) has a multi-layered conviction setup, as key technical indicators combined with improving fundamentals point towards a bullish run, according to SEBI-registered analyst Rajneesh Sharma.
Technical charts indicate a price rebound from the ₹603–₹620 band, supported by a confluence of rising channel support and historical demand, he added.
This reversal was marked by a wick rejection on strong volumes, an indication of institutional buying support, Sharma noted.
Key technical indicators also supported the reversal. The relative strength index (RSI) formed a higher low even as price dipped, a pattern often seen before major trend reversals in the stock’s history.
On-balance volume (OBV) remained flat or edged higher during the decline, signalling accumulation. Similar setups in March 2020, March 2023, and May 2025 also showed RSI inflections with high-volume bars, which marked significant bottoms, Sharma said.
According to him, a breakout above ₹750 could trigger an uptrend towards ₹1000–₹1050, but a close below ₹600 would negate the bullish bias.
The company is improving its core fundamentals. It has reduced its debt, and Jaguar Land Rover (JLR) is now debt-free. Tata Motors reported FY25 profit after tax of ₹23,278 crores, and its ROE and ROCE stood at 28.1% and 20%, respectively.
The company currently has ₹65,806 crore invested in Capex Work-in-Progress, with a focus on building its EV infrastructure.
Tata Motors is a heavyweight stock, contributing nearly 13.6% to the Nifty Auto Index. It fell around 8.4% in the past month, dragging the index down 2.4%.
In the past week, the stock shed nearly 5% after JLR lowered its FY26 EBIT margin guidance from 10% to 5-7%. Multiple brokerage firms lowered the company’s earnings forecasts.
Jefferies cut its FY26-28 EPS estimates by 12-19% and retained its ‘Under Perform’ rating. Nuvama Institutional Equities maintained its ‘Reduce’ rating while retaining a target price of Rs 670.
Earlier this week, a Crisil report stated that a shortage of rare earth magnets is expected to slow down India’s EV production. Tata Motors is the biggest electric carmaker by market share in India.
On Stocktwits, retail sentiment turned ‘bearish’ from ’bullish’ a month ago, amid high message volumes.
Tata Motors retail sentiment and message volumes on June 19, 2025 | Source: StocktwitsYear-to-date (YTD), the stock has lost nearly 10%.
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