Tata Tech share price down 25% this year, trades near an all-time low; is it a buying opportunity? Experts weigh in

Tata Tech stock check: A day after plumbing an all-time low of ₹883.55, Tata Technologies share price saw a remarkable gain of nearly 4 per cent in intraday trade on BSE on Tuesday, December 24. Tata Technologies share price opened at ₹894.65 against its previous close of ₹889.85 and rose as much as 3.7 per cent to the level of ₹922.95. The stock, however, pared some gains and traded 2.2 per cent higher at ₹909 around 2 PM.

Tata Technologies share price trend

Tata Technologies stock debuted on the Indian bourse on November 30, 2023, at a 140 per cent premium to the issue price of ₹500. As of the stock’s closing price of ₹889.85 on December 23, 2024, it has gained about 78 per cent against its issue price.

However, from its all-time high of ₹1,400 on November 30 last year, it has come off by 36 per cent.

This year so far, shares of the company have declined 25 per cent. On a monthly scale, the stock has been falling since October.

Is the stock buy-worthy?

Experts have mixed views on the stock at this juncture. Some see technical indicators suggesting a potential upside, and some highlight that the stock’s outlook is weak as it lacks bullish confirmation from price action and indicators.

According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, Tata Tech is approaching completion of a bullish crab pattern in the ₹880-870 zone, which coincides with the S4 camarilla pivot, signalling a strong support level and potential reversal.

Patel said after this pattern is completed, a phase of consolidation between ₹870-900 is expected, followed by a possible rebound toward ₹975. This target aligns with the 0.382 per cent Fibonacci retracement of the prior decline, a key resistance level.

Moreover, the daily RSI is in an extremely oversold condition, which adds to the bullish outlook and further hints at an upward corrective move.

“The confluence of harmonic patterns, pivot levels, and technical indicators suggests a short-term recovery is likely, with a rebound toward ₹975 as the primary objective,” said Patel.

On the other hand, Hardik Matalia, a derivatives analyst at Choice Broking, pointed out that Tata Tech stock has consistently formed lower highs and lower lows on the daily chart, signalling sustained downward momentum. Additionally, it is trading below all key moving averages, including short-term, medium-term, and long-term, reinforcing the weakness in its technical structure.

“Given the prevailing trend, fresh buying is not advisable at current levels. Investors holding long positions should consider exiting on any bounce, as the overall sentiment remains negative. The RSI is near 25, deep in the oversold zone, suggesting a potential technical rebound in the near term. However, this bounce should be viewed as an opportunity to minimize losses rather than a trend reversal,” said Matalia.

“Traders should closely monitor price movements around key resistance levels to gauge if any bounce has sufficient momentum. Until a clear trend reversal is supported by any price action on the daily chart, caution is warranted,” Matalia said.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.