Tata Motors Share Price Target 2025: Is It Time to Buy at 30% Discount? - Read Now

Tata Motors, a leader in the automotive industry, has experienced significant stock price fluctuations. Following a 35% correction from its all-time high of Rs 1,179, Tata Motors shares have rebounded by over 7.5%, fueled by a broader recovery in the domestic market. Yet, with its current price of Rs 816.80 (as of December 6), the stock remains available at a 30% discount. Should you invest now? Let’s explore expert opinions, technical trends, and the stock’s potential for 2025.

Current Stock Performance: A Closer Look

• Recent Gains: On December 6, Tata Motors' shares surged 3.06% to Rs 816.80 on the NSE, climbing above its 5-day, 10-day, and 20-day exponential moving averages (EMAs).
• RSI Indicator: The Relative Strength Index (RSI) has entered the bullish zone, quoting above 51. This signals the stock is gaining momentum.

While the RSI remains below 70, indicating no overbought conditions, analysts suggest waiting for decisive moves above key levels before making a trade.

Expert Analysis: What Does the Market Say?

Osho Krishnan, Senior Analyst at Angel One, shared insights on Tata Motors' stock trajectory:

• Consolidation Phase: Tata Motors is currently in a strong consolidation zone between Rs 770 and Rs 800.
• Buy Signal: Once the stock crosses the Rs 820 mark, investors can consider accumulating shares for short-term targets of Rs 940 to Rs 950.
• Base Formation: This consolidation phase could serve as a foundation for future growth, making the stock attractive for long-term investors.

Key Levels to Watch

Should You Invest in Tata Motors Now?

While Tata Motors is trading at a significant discount from its all-time high, analysts recommend waiting for a decisive breakout above Rs 820 before buying. Here’s why:

1. Consolidation Indicates Stability:
   The stock's current consolidation phase suggests a base formation, signaling potential upward movement.

2. Technical Strength:
   The stock has crossed short-term moving averages, a bullish indicator. Additionally, the RSI entering the bullish zone strengthens the case for a positive trend.

3. Short-Term Potential:
   If Tata Motors breaks above Rs 820, it could reach Rs 940-950 in the short term, offering attractive returns for investors.

What Makes Tata Motors an Attractive Investment?

1. Industry Leadership:
   Tata Motors is a leading player in India’s automotive market, benefiting from its strong portfolio in electric vehicles and commercial vehicles.

2. Discount Opportunity:
   Trading at a 30% discount, the stock presents an opportunity for long-term investors to buy into a fundamentally strong company at a lower valuation.

3. Improving Market Conditions:
   The recent recovery rally in the domestic market has provided a supportive environment for stocks like Tata Motors to regain momentum.

Investment Advice: Play the Long Game

For long-term investors, Tata Motors offers an appealing risk-reward ratio. However, patience is key:

• Wait for Rs 820 Breakout: A decisive move above this level confirms bullish sentiment.
• Accumulate on Dips: Consider accumulating shares in the Rs 770-800 range to build a position for long-term gains.
• Short-Term Targets: Post Rs 820 breakout, aim for Rs 940-950 as a realistic short-term goal.

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