Tata Motors in top gear; lets have a glance at the stocks outlook!

So, what’s working in the favour of the stock?

The stock of Tata Motors jumped nearly 10 per cent on Friday and currently, it’s trading near the day’s high.   

So, what’s working in the favour of the stock? The stock had come out with its earnings last evening and the market participants have given big thumbs up amid consolidated net loss narrowed.  

The company’s total revenue from operations during Q4FY22 declined by 11.5 per cent on a YoY basis to Rs 78,439 crore while the consolidated net loss narrowed to Rs 992 crore. The sequential improvement in volumes and Q4FY22 revenues lowered on account of lower JLR volumes. Semi-conductor availability continues to impact volume.   

Margins improve sequentially with volumes and profit actions. YoY margins were impacted, owing to commodity inflation and supply chain issues. Positive FCF was recorded for the second quarter in a row.  

The business environment continues to be challenging; however, the product, demand, pricing, and cost opportunities will improve financial results in FY23.  

The stock is down by nearly 7 per cent on a YTD basis and on a YTD basis, it is down by 15.5 per cent.  

On the daily chart, the stock has formed an opening bullish Marubozu candle. The candle has no lower shadow as the open and low are identical. The opening bullish Marubozu candle indicates extreme bullishness as after opening, the price starts to trend higher, forming a long body without a lower shadow. Moreover, the stock has recorded a fresh five-day high, and for the stock to continue the momentum, it's crucial to sustain above the Rs 410 mark.