Shares of Tata Elxsi Ltd fell for the sixth consecutive session on March 17, 2025, amid what appears to be broader market resilience. The Tata Group's stock, currently undergoing considerable correction, decreased by 0.78%, setting a 52-week low at Rs 5,196.05 on the Bombay Stock Exchange (BSE).
The stock's technical indicators paint a concerning picture, showing it is oversold with a Relative Strength Index (RSI) of 25.4. Tata Elxsi shares are now trading below all significant moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day averages. It’s been a difficult year for the stock, which has plummeted 23%, and it has also experienced declines of 32% over both the last six months and the past year.
Tata Elxsi, which achieved its 52-week high of Rs 9,082.90 on August 27, 2024, opened flat at Rs 5,237.30 on March 17. On this date, 9,686 shares changed hands, resulting in total trading turnover of Rs 5.06 crore.
Jigar Patel from Anand Rathi explained the technical outlook, indicating levels of support and resistance, noting, "Support will be at Rs 5,145 and resistance at Rs 5,400. A decisive move above Rs 5,400 may trigger a rally up to Rs 5,650. The expected short-term trading range is projected between Rs 5,000 and Rs 5,650."
Meanwhile, Morgan Stanley has reasserted its 'Underweight' recommendation for Tata Elxsi with its new target price set to Rs 5,400, down from Rs 6,000. This reflects continued caution surrounding the firm, especially as it grapples with considerable selling pressure.
Mandar Bhojane, equity research analyst at Choice Broking, stated, "Tata Elxsi India is currently trading at Rs 5,185 and remains under selling pressure, forming lower highs and lower lows, which suggests a sustained bearish trend. The stock has dropped by 51% from its all-time high and trades below the 20-day, 50-day, and 200-day exponential moving averages (EMAS), underscoring negative momentum. The RSI stands at 30.54 and continues to decline, indicating growing selling pressure."
On the horizon, the Rs 4,800–Rs 4,600 area is seen as potential support, backed by historical buying patterns. Should the stock stabilize within this range, analysts speculate it may trigger a potential rebound. "If the stock can clear the Rs 5,700 resistance level, it may point to a reversal, possibly leading to targets near Rs 6,200–Rs 6,600," Bhojane explained.
Conversely, should the stock fall below Rs 5,000, it could face intense selling pressure. The analysts at SMC Global Securities remarked, "The stock hit a 52-week low due to long unwinding and remains below key moving averages. If selling continues, the stock could decline to the Rs 4,600 level soon. Traders should watch for selling zones, particularly around Rs 5,700, making it prudent to sell on any upward movements for now."
Adding to the analysis, A R Ramachandran, SEBI registered independent analyst, observed Tata Elxsi's oversold status, noting strong resistance at Rs 5,350. “A daily close below the Rs 5,133 support could lead to targets around Rs 4,785 shortly,” he cautioned.
Founded as part of the Tata Group, Tata Elxsi is primarily engaged in providing design and technology services across multiple sectors, including automotive, broadcast, communications, healthcare, and transportation. The firm strives to facilitate customers' product and service transformation through innovative design thinking and the integration of digital technologies such as Internet of Things (IoT), cloud computing, mobility, virtual reality, and artificial intelligence.
The persistent downward pressure on Tata Elxsi paints a challenging picture for the stock, necessitating careful analysis from traders and potential investors as they navigate the current economic conditions and industry trends critically.
