On Tuesday, January 30, Tata Motors experienced a significant surge in its share price, soaring over 5% and reaching a fresh 52-week high of ₹886.30 during intraday trading on the BSE. This development briefly propelled the stock ahead of Maruti Suzuki, establishing itself as India’s most valuable automobile company based on market capitalization (m-cap).
However, as the day progressed, the stock moderated and was trading 2.78% higher at ₹864.20 on the BSE around 2:50 pm.
Tata Motors has been consistently on an upward trajectory in recent times. Looking at a monthly perspective, the stock has shown positive momentum since November, recording a gain of over 12% in that month, almost 11% in December, and an additional 11% in January thus far.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, cautioned that the stock appears to be extremely overbought on a monthly scale at the present juncture. Patel highlighted the need for caution as there are multiple Fibonacci ratio clusters near the ₹900–950 zone, which could pose a significant resistance.
Patel advised, “One should opt for profit booking in the mentioned zone and avoid fresh longs.”
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