Tata Motors' share price has fallen by 35.6 percent from its all-time high of Rs 1,179 on July 30, 2024. The company is currently trading close to its crucial super trend line on the monthly scale, having lost over one-third of its value in less than five months.

Three years ago, in January 2021, the stock broke over its then super trend line on the monthly scale and went on to increase by 544 percent, or 6.4 times, to a high of Rs 1,179 in July. With the current drop, the stock is now within striking distance of the long-term trend line, which is at Rs 734.

Tata Motors

Current price: Rs 787

Upside Potential: 19.4%

Downside risk: 26.3%

Support: Rs 759, Rs 734, Rs 700

Resistance: Rs. 836

Given the strong 36 percent drop, Tata Motors stock is expected to trade with a bearish bias on the near and medium term charts. Technically, the stock is projected to trade weakly as long as it remains below Rs 940, with near-term resistance at Rs 836.

Even as the stock is seen moving towards its monthly super trend line support at Rs 734, interim support is available around Rs 759 - its 100-WMA (Weekly Moving Average). Thus, as long as the Rs 734 - Rs 759 support zone remains closed, Tata Motors may be able to recuperate some of its recent losses.

On the other hand, if the main support zone is violated, the stock may fall further to the 200-WMA, which is currently at Rs 580 levels, with intermediate support projected around Rs 700 levels.