Technical charts signal a medium-term correction, though long-term support remains firm, the analyst noted.
Tata Motors is expected to report a weak Q1 earnings performance due to subdued JLR volumes and tariffs on Indian exports.
According to reports, the carmaker is expected to post an 8.7% decrease in revenue and about a 34% plunge in net profit for Q1FY26.
On the technical charts, investors are waiting to see if the recent downtrend is just a pause or the beginning of deeper weakness, said SEBI-registered analyst Rohit Mehta.
The stock is in a medium-term corrective phase, closing at ₹649.75, down over 40% from its July 2024 all-time high of ₹1,168.
However, the long-term trend remains intact as prices continue to hold above the critical breakout zone of ₹500 – ₹540, which acted as a major resistance in the 2015 – 2017 period and now serves as strong support, the analyst said. Immediate resistance lies near ₹700, where the stock has repeatedly faced selling pressure.
From a fundamental perspective, the company enters this earnings season with mixed signals, Mehta noted.
In Q4 FY25, Tata Motors saw flat year-on-year growth in sales and operating profit, but strong sequential momentum. Operating profit rose 35% QoQ and profit before tax (PBT) surged over 51%. EPS rebounded 56.6% quarter-on-quarter, though still down significantly year-on-year.
The company’s long-term strengths include consistent debt reduction, a 5-year profit CAGR of 37.4%, and a robust 3-year average ROE of 29.8%. However, a 3.83% decline in promoter holding over three years may raise eyebrows, Mehta added.
With U.S. tariff threats looming and global volatility rising, Q1 results may provide key direction for the next leg of Tata Motors’ journey.
Retail sentiment on Stocktwits remained ‘bullish’. It was ‘neutral’ a week ago.
The stock has shed 12.4% year-to-date (YTD).
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