By admin Shares of Tata Motors Ltd – DVR (differential voting right) on Tuesday saw a sharp uptick. The stock climbed 4.73 per cent to hit a record high of Rs 804.60. Today’s strong upmove in the share price came after a block deal. A total of 1,34,765 shares changed hands at Rs 768.45 apiece for a turnover of Rs 10.36 crore, BSE data showed. Although, details of buyers and sellers were not announced by the exchange at the time of writing this story.
Separately, Tata Motors Ltd shares also recorded a similar upward move today. The stock surged 4.91 per cent to scale a fresh all-time high of Rs 1,179.05.
Analysts largely remained positive on the counter, suggesting buying it on dips. “Tata Motors has been going on a very strong note. The stock is currently trading at all-time high levels. One can add this on dips from a medium- to long-term view. It is one of the best performers in the auto universe,” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Those holding can continue with their positions as the company has been increasing its strong presence in the electric vehicle (EV) space, Bathini added.
Tata Motors has soared into uncharted territory in the last couple of trading sessions, suggesting a robust undertone, said Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One.
On the lower end, Rs 1,100 should act as intermediate cushioning, while strong support is expected near the recent breakout of the 1,050-1,040 zone. Also, with the recent upmove, the counter soared over 18 per cent in the month and hence, complacency should be avoided, and profits need to be trailed with higher stop losses. In the meantime, dips toward the mentioned support are likely to augur well for the buyers from the short to medium-term time frame,” Krishan suggested.
“Last week, Tata Motors experienced a notable breakout after a prolonged consolidation period of around five months. This movement signalled a significant change in market dynamics. The breakout indicates increased investor confidence and a fresh potential upward trend. Looking ahead, any minor pullbacks in the stock price could present buying opportunities, as these dips may allow investors to enter long positions,” said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
“The support level is expected to be around Rs 1,060, providing a cushion for the stock, while resistance is anticipated near Rs 1,200 mark, which could act as a ceiling for further price advances. Additionally, the weekly Relative Strength Index (RSI) is positioned at approximately 71, indicating that the stock is in a strong bullish phase. The elevated RSI further reinforces the positive sentiment, hinting that the stock may continue its upward trajectory,” Patel added.
“The stock can hit an upside target of Rs 1,250 in the near term,” said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking. Keep stop loss placed at Rs 1,150 for this trade, he mentioned.
DVR shares reduce the owner’s voting rights but offer all other benefits.