shares of Tata Motors According to the signals from one of the most widely used technical indicators, after almost a month with no real direction the signs are ready for a bullish move.
A study using Bollinger Bandwidth shows a so-called coiling pattern that heralded a period of increased volatility in the past. The coil – the shrinking gap between the upper and lower bands – is the tightest in 15 months, and the stock rose an average of 30% in seven instances since the COVID-induced crash of March 2020 when bandwidth was similarly narrow.
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India’s second-largest automaker has advanced 184% this year as investors bet that its lower cost, new model offerings and better leverage ratios will boost shares. The company holds more than 70% of the country’s nascent electric-car market, attracting investment from TPG and others.
The firm is betting on the electric shift, even as one of Asia’s most polluted countries lags behind other countries with battery models accounting for just 1% of annual sales. Tata Motors will invest about $2 billion in its electric vehicle unit over five years, chief financial officer PB Balaji said in October, and the firm aims to have 20% of total sales electric by 2026, with 10 battery models rolling out. plan to do. that date.
Tata Motors was trading 2.7% higher at Rs 519.2 per share as of 11:51 am in Mumbai on Tuesday, while the benchmark index was down 0.3%.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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