None of Tata Group’s Stocks Are in the Oversold Territory: A Stronghold Amid Market Correction

The Tata Group, one of India’s most prestigious conglomerates, spans 30 companies across ten verticals. Its diverse portfolio includes sectors such as Technology, Automotive, Steel, Consumer and Retail, Infrastructure, Telecom, Media, Tourism, and more. With a rich history of resilience, Tata Group stocks continue to stand tall even during challenging market conditions.

Market Correction and Oversold RSI Levels

In the recent market correction, the NSE benchmark Nifty50’s Relative Strength Index (RSI) for the 14-period on the daily chart slipped below 30, entering oversold territory. However, despite the benchmark index’s recovery of 300 points on November 19, it remains in the oversold zone. This technical scenario highlights the prevailing weakness in the broader market.

Tata Group Stocks Defy the Trend

Contrary to the Nifty50’s oversold condition, an interesting observation emerges: none of the Tata Group’s listed companies on NSE have entered the oversold RSI zone (below 30). Here’s a snapshot of their RSI values:

Majority of Stocks Show Strength

The majority of Tata Group stocks trade within an RSI range of 33 to 54, indicating neither oversold nor overbought conditions. This range reflects stability and underscores the resilience of Tata Group companies amid volatile market conditions.

Standout Performer: Indian Hotels

Among the Tata Group stocks, Indian Hotels shines as an outperformer. Its share price hit a fresh high on November 19, 2024, gaining 2.60%. The stock’s RSI has surged to 65.78, marking a fresh swing high, reflecting strong momentum and investor confidence.

Conclusion: A Testament to Tata Group’s Resilience

While the broader market faces pressure, Tata Group stocks exhibit resilience, avoiding the oversold territory. With Indian Hotels leading the charge, this resilience underscores the group’s enduring value and the strength of its diversified portfolio.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.