The shares of Tata Motors Ltd. should move strongly after about a month with no real direction, according to signals from one of the most widely used technical indicators.
A study using the Bollinger BandWidth shows a so-called winding pattern that in the past heralded a period of heightened volatility. The spool – the narrowing gap between the upper and lower bands – is the narrowest in 15 months, and the stock has moved an average of 30% in the seven cases since the Covid-induced crash of March 2020 when the band pass through was just as narrow.
India’s second-largest automaker has grown 184% this year, with investors betting that its lower costs, new model offerings and improved leverage ratios will boost stocks. The company also holds more than 70% of the country’s nascent electric car market, attracting investment from TPG and others.
The company is betting on the switch to electricity even as one of the most polluted countries in Asia has lagged behind other countries, with battery models only accounting for 1% of annual sales. Tata Motors will invest around $ 2 billion over five years in its electric vehicle unit, CFO PB Balaji said in October. this date.
Tata Motors was trading up 2.7% to 519.2 rupees per share at 11:51 am Tuesday in Mumbai, while the benchmark was down 0.3%.
This story was posted from an agency feed with no text editing. Only the title has been changed.
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