Shares of Tata Investment Corporation Ltd saw a sharp uptick on Tuesday. The stock surged 20 per cent to hit its upper circuit level of Rs 7,406.15. It eventually settled 19.45 per cent higher at Rs 7,372.30. At this price, it has gained 73.13 per cent on a year-to-date (YTD) basis.
Bourses BSE and NSE have put the securities of Tata Investment under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities said holding companies saw strong buying interest recently as their relative valuations looked attractive at current levels. In sync, Tata Investment shares also saw a strong upmove, Bathini added.
Tata Investment is a subsidiary of Tata Sons, a holding company of the Tata Group. It invests in a portfolio of quoted and unquoted securities of companies, including Tata Companies, which are engaged in various businesses.
Holding companies usually don't have operations of their own but they own investments in other listed entities, particularly within the same group.
Technically, the near-term support on the counter could be seen at Rs 6,500. And, a decisive close above Rs 7,000 is required for more upside.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Tata Investment has seen a strong spurt in price and volumes after a long haul. The counter seemed under substantial consolidation but with the recent spurt, mojo appears to be returning. The Rs 7,000-6,600 zone is likely to act as strong support, while on the higher end, a decisive breakthrough above Rs 7,500 is expected to trigger the next leg of rally in the comparable period."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 7,000 and resistance at Rs 7,500. A decisive close above Rs 7,500 level may trigger a further upside towards Rs 7,650. The expected trading range will be between Rs 7,000 and Rs 7,750 for the short term."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking suggested that the stock can hit Rs 7,600 in the near term. Keep stop loss placed at Rs 7,300, Singh mentioned.
As of June 2024, promoters held a 73.38 per cent stake in the company.