- According to a technical chart analysis, Tata Motors shares are showing signs of volatility in the coming days.
- The company has a market share of over 70% in the country’s new electric car market, attracting investments from TPG and others.
Studies using Bollinger bandwidth have shown so-called coiling patterns that reflect periods of increased volatility in the past. The contraction between the coil-upper and lower bands is the strongest in 15 months, and the stock rose an average of 30 per cent seven times when the bandwidth narrowed similarly after the corona crash in March 2020.
India’s second largest automaker has seen a jump of 184 per cent this year as investors promised the company would cut its costs, introduce new models and promote better leverage ratios. The company accounts for over 70 per cent of the country’s new electric car market, which attracts investments from TPG and others.
India, one of the most polluted countries in Asia, is betting on the electric shift despite trailing other countries with only 1 per cent share in annual sales of battery models. Chief Financial Officer P.B. Balaji had said in October that Tata Motors would invest $2.2 billion in its electric vehicle arm over five years. The company aims to account for 20 percent of electric car sales by 2026. By then the company plans to launch 10 battery models.
Despite a fall of 396 points in the stock market on Tuesday, Tata Motors rose 2.47 percent to Rs 12.50 and closed at Rs 517.95.