Tata Motors 3-year bull-run under threat as stock tumbles 36% in 5 months

The stock had soared 544 per cent or over 6-fold to a high of Rs 1,179 in July 2024 after a breakout above the super trend line on the monthly scale in January 2021, shows chart.

The share price of Tata Motors has tumbled by 35.6 per cent from its all-time high of Rs 1,179 hit on July 30, 2024. In less than 5 months the stock has erased more than one-third of its value and now trades near its all-important super trend line on the monthly scale.  Three years ago, in January 2021 the stock gave a breakout above its then super trend line on the monthly scale and went on to zoom over 544 per cent or 6.4-fold to a high of Rs 1,179 this July. With the recent fall, the stock is now within striking distance of this long-term trend line which stands at Rs 734.  Despite, the sharp fall Tata Motors stock still trades with a gain of 6.6 per cent for the calendar year 2024. In comparison, the NSE Nifty 50 index has gained 13.7 per cent in the same period.  Should you be worried or is it a good time to buy Tata Motors? Here's what the technical chart suggests.  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 steep 36 per cent fall, Tata Motors stock is seen trading with a negative bias on the short- and medium-term charts. Technically, the stock is expected to trade on a weak note as long as it sustains below Rs 940 levels, with near resistance seen at Rs 836.    Even as the stock is seen drifting towards its monthly super trend line support at Rs 734; interim support for the stock exists around Rs 759 - its 100-WMA (Weekly Moving Average). Thus, as long as the Rs 734 - Rs 759 support zone is held on a closing basis, Tata Motors may attempt to recoup some of its recently lost ground. CLICK HERE FOR THE CHART  On the flip side, in case, the key support zone is violated, the stock can extend its fall towards the 200-WMA, which stands at Rs 580 levels; with interim support expected around Rs 700 levels.