How to trade TCS, Tata Chemicals, other Tata stocks as boardroom battles could reach court

Shares of TCS, Tata Chemicals and other Tata Group companies have witnessed sharp swings over the past few sessions as the corporate tussle between Tata Trusts and Tata Sons over N Chandrasekaran's reappointment as Chairman has intensified, with the dispute now potentially heading to court.

In Monday's session, Tata Chemicals fell more than 3% to hit a low of Rs 670, while Tata Investment Corporation declined nearly 2%. Tata Steel, Tata Motors PV, TCS and several other Tata Group stocks also traded in the red, though some pared most of their losses as the session progressed.

How to trade Tata stocks amid volatility

Sudeep Shah of SBI Securities said Tata Chemicals witnessed a strong pullback over the last two days. The RSI has risen sharply, reflecting the strong momentum during this period. However, the stock faced resistance around its 100-week EMA zone of Rs 805–810. Only a decisive breakout above this zone could pave the way for an extension of the pullback in the near term. Until then, the bearish bias is likely to persist.


TCS remains in a downtrend and continues to trade below key moving averages. The RSI is in a falling mode and has slipped below the 40 mark, indicating bearish momentum. The MACD line is also below the zero line, signalling a weak bias. The 20-week EMA zone of Rs 2,310–2,320 is likely to act as resistance, and the bearish bias is likely to persist as long as the stock trades below this zone, Shah said.

Tata Motors PV remains in a downtrend and continues to trade below key short- and long-term moving averages. The MACD line is well below the zero line, reflecting a bearish bias. The RSI is also below the 40 mark on the weekly chart, further reinforcing the bearish momentum. The Rs 320–325 zone is likely to act as immediate resistance, and the bearish bias is likely to persist as long as the stock trades below this zone, Sudeep Shah added.

Tata Investment Corp has been moving in a Rs 762-616 range since late April this year. The RSI remained flat during this period, reflecting sideways bias. On the other hand, the ADX also remained flat, indicating a lack of volatility in the stock. MACD line continues to remain below the zero line on the weekly chart, indicating a weak bias, said Shah. A decisive breakout on either side of the range will provide future directional cues.

Tata Sons, Tata Trusts battle continues

In a strongly worded letter on Friday, Tata Trusts chairman Noel Tata challenged the decision's validity. “I write in my capacity as the chairman of Tata Trusts and a nominee director on the board of Tata Sons to place on record my serious disappointment and indeed my strong objection to the conduct of the meeting of the company today,” Tata wrote in the letter, the contents of which were described to an ET reporter.

Tata Trusts, which control 66% of Tata Sons through the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust, passed a resolution in July 2025 seeking to keep the holding company privately owned. The Shapoorji Pallonji Group, Tata Sons’ largest minority shareholder with an 18.37% stake, meanwhile views a listing as the most practical way to unlock value.

Tata Trusts, headed by Noel Tata, may legally challenge the Tata Sons' board's decision to reappoint N Chandrasekaran as chairman and seek judicial intervention to maintain the status quo on his tenure, as reported by ET.

Disclaimer: This article has been written by Veer Shamra, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.