Tata Tech shares slip 8% in 2024 so far; should you enter at current levels?

Shares of Tata Technologies Ltd were trading 0.28 per cent higher at Rs 1,085.60 in Wednesday's trade. At this price, the stock has fallen 8.03 per cent on a year-to-date (YTD) basis. Moreover, it has dropped 22.46 per cent from its all-time high value of Rs 1,400, a level seen on November 30 last year (listing day). Tata Tech shares made a blockbuster debut on bourses.

The company has recently announced a joint venture with BMW Group to develop software for the German luxury automaker. "The joint venture will aid BMW Group in engineering premium products, delivering great digital experiences for its customers and propelling its digital transformation journey. The focus will be on delivering automotive software, including software-defined vehicle (SDV) solutions for its premium vehicles and digital transformation solutions for business IT," it stated.

Technical analysts largely suggested that the counter looked "slightly bullish" on daily charts. Support could be seen at Rs 1,055, followed by Rs 1,020 level. On the higher side, immediate resistance will be at Rs 1,090. And, a decisive close above the said level is required for further upside.

"The stock has witnessed a decent erosion from the Rs 1,400 zone. It has taken support near Rs 1,020 level to bottom out on daily charts. Currently, one can expect some upward move and a decisive breach above Rs 1,090 mark can further improve the bias. Thereafter, next expected targets will be between Rs 1,150 and Rs 1,210 levels. Major support will be at Rs 1,020," said Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher.

"Tata Technologies looks slightly bullish on daily charts with strong support at Rs 1,020. A daily close above resistance of Rs 1,090 could lead it to an upside target of Rs 1,280 in the near term," said AR Ramachandran from Tips2trades.

"Support will be at Rs 1,055 and resistance at Rs 1,090. A decisive close above Rs 1,090 level may trigger a further upside to Rs 1,150. The expected trading range will be between Rs 1,035 and Rs 1,165 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

As of March 2024, promoters held a 55.39 per cent stake in the company. Tata Tech is scheduled to declare its quarterly results on May 3.