Tata Motors, Ashok Leyland, Eicher eye up to 17% gains, charts show

Tata Motors' stock gained 161 per cent in 2021, and reached its new 52-week high of Rs 536.70. However, the stock has been tepid so far in 2022 and seen testing the 200-DMA

Tata Motors on Monday launched the country’s first CNG truck in the medium and heavy commercial (M&HCV) vehicle segment in the 28- and 19-tonne nodes amid a growing demand from logistic and infrastructure segments.

The company also launched a fleet of seven trucks in the intermediary and light commercial vehicle (I&LCV) segment, meant for varied applications. 

The fleet boasts a host of features, including the new-age advanced driver assistance system (ADAS), driver monitoring system (DMS), electronic stability control (ESC) and tyre pressure monitoring system (TPMS).

The global automobile manufacturer's portfolio spreads across passenger cars, trucks, vans, coaches, buses, luxury cars, sports cars. 

Tata Motors' stock gained 161 per cent in 2021, and reached its new 52-week high of Rs 536.70. However, the stock has shed 5 per cent so far in 2022.

Here’s the outlook for commercial vehicles stocks: 

Tata Motors Ltd (TATAMOTORS) 

Outlook: Testing the support of 200-DMA

After aggressively crossing the 200-day moving average (DMA) at Rs 457-mark in August, the stock is retracing to test the same support mark. While the technical oscillator Relative Strength Index (RSI) exhibits a weakness, the stock price action does not let selling pressure to dominate. 

The divergence on RSI is not capable to strongly drag the price down. So far, the support of Rs 420 continues to hold the major breakdown neckline. The immediate cushion comes to Rs 440 levels. On the reversal scenario, the stock shall face a hurdle at Rs 480 levels. CLICK HERE FOR THE CHART

Ashok Leyland Ltd (ASHOKLEY) 

Likely target: Rs 190

Upside potential: 13%

Shares of Ashok Leyland clocked a new historic peak of Rs 169.45 today. The overall trend became robust when the stock succeeded in overthrowing the selling pressure range of Rs 150-Rs 160 levels in late August, according to the daily chart. The optimistic sentiment appears to be heading towards Rs 190 with a closing basis support of Rs 160. CLICK HERE FOR THE CHART

Mahindra & Mahindra Ltd (M&M)

Likely target: Rs 1,500

Upside potential: 15%

The stock has witnessed the highest gains in 2022 since 2009. The stock is up 58 per cent to date with momentum scaling uncharted territories. The immediate support comes to Rs 1,250 and Rs 1,200 levels with a positive sentiment, which aims to reach Rs 1,500 levels. The higher high, higher low formation is showing robust upward bias and the pattern continues to see higher interest from market participants. CLICK HERE FOR THE CHART

Eicher Motors Ltd (EICHERMOT)

Likely target: Rs 4,000

Upside potential: 17%

The stock has begun the bull run after crossing Rs 3,000 mark, shows the weekly chart.  There is a “Golden Cross” formation on the daily chart, which suggests a medium-term bullish outlook. The support comes to Rs 3,150 with the stock looking to scale Rs 4,000 mark. CLICK HERE FOR THE CHART

Force Motors Ltd (FORCEMOT)

Likely target: 1,550

Upside potential: 15%

There is an “Inverse Head and Shoulder” breakout on the daily chart. The pattern target comes to Rs 1,550-mark. The closing basis cushion exits at Rs 1,200 levels. The RSI is trading in the overbought category, but the stock price is not letting selling pressure to exaggerate. CLICK HERE FOR THE CHART