Tata Motors sinks 47% in 7 months, fall similar to 2015; stock headed to?

In 2015, Tata Motors cracked by 54% following a sharp 776% rally on the BSE & NSE. This time around the correction came after 562% surge; will history repeat itself as the stock searches for a bottom?

Tata Motors stock has slumped 47 per cent and logged losses in the last seven straight months on the bourses. The recent fall has eerie similarities in the stock price movement in the year 2015, wherein the stock had also dropped for seven straight months. These two, thus far, are the only two occasions wherein the stock has registered such a long monthly losing streak.  So far in the recent fall, the stock from a high of Rs 1,179 in July 2024, has tanked to a low of Rs 618 in February 2025. Whereas a decade ago, Tata Motors stock from a high of Rs 596 in February 2015 had plunged to a low of Rs 275 in August 2015 - registering a loss of almost 54 per cent in seven months.  Interestingly, the historic chart shows that Tata Motors share price movement preceding the market fall was also alike.  Here's what happened during earlier rally and 2015 fall  The rally in Tata Motors stock started in July 2009, after the stock broke above its then 20-MMA (Monthly Moving Average) which stood at Rs 68. From there on the stock zoomed 776 per cent or 8.8-fold to a high of Rs 596 in February, 2025. Intermittently the stock sought support around its 20-MMA during the 5.5 year period.    Thereafter, during the 2015 fall the stock not only dropped below the 20-MMA support, but also went on to dip below the 50-MMA, and eventually found support around the lower-end of the Bollinger Bands on the monthly scale below staging a notable pullback rally. Chart shows, the stock bottomed out around Rs 262 in February 2016 and from there it rallied 125 per cent in the following seven months.  Here's what happening this time around  This time around, Tata Motors bull-run started after the stock conquered its 20-MMA in November 2020. The stock from levels of Rs 178 zoomed to a new all-time high at Rs 1,179 - up 562 per cent 6.6-fold in 3.8 year period, with interim support for the stock again around the 20-MMA. CLICK HERE FOR THE CHART  At present, the stock has already broken below the 20-MMA, which stands at Rs 832, and is now on the verge of testing support at its 50-MMA, which stands at Rs 577. Interim support for the stock exists at Rs 600 - the 200-WMA (Weekly Moving Average) shows chart.    Can history repeat itself?  If history were to be repeated, Tata Motors stock may break below the 50-WMA, and seek support around its lower-end of the monthly Bollinger Bands, which indicate support around the Rs 495 levels for now. This implies another downside risk of 20.3 per cent for Tata Motors from present levels.  That apart, the other long-term moving averages - the 100-MMA and the 200-MMA stand at Rs 417 and Rs 341, respectively.