Shares of Tata Motors extended their gains for the third consecutive session in Wednesday's trade, despite weakness in most automobile counters. The stock rose 1.67 per cent to hit a day high of Rs 419.95 over its previous close of Rs 413.05. At today's high level of Rs 419.95, the scrip has climbed 9.89 per cent in three straight sessions.
The automaker, in a BSE filing, said its global wholesales in the December quarter (Q3), including that of Jaguar Land Rover (JLR), stood at 3,22,556 units, up 13 per cent on a year-on-year basis.
Motilal Oswal Securities has a target of Rs 520 on the stock. Considering today's high level, the target suggests a 23.82 per cent potential upside for the stock.
The brokerage said all businesses of Tata Motors are in recovery mode. While the India commercial vehicle (CV) business will see a cyclical recovery, the India passenger vehicle (PV) business is in a structural recovery mode, it stated.
Technical charts hinted that support on the counter could be seen at Rs 408.
AR Ramachandran from Tips2trades said, "Rs 423 will be strong resistance for Tata Motors on the daily charts. A close above this level could lead to targets of Rs 443-472 in the near term. Support will be at Rs 408."
Tata Motors' 14-day relative strength index (RSI) came at 58.92. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 1,186.89.
The stock was last seen trading higher than 5-day, 20- and 50-day moving averages, but lower than 100-day and 200-day moving averages.
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Tata Motors has an average target price of Rs 521.62, showed Trendlyne data, suggesting a potential upside of Rs 25.16 per cent. The scrip has a one-year beta of 1.49, indicating high volatility on the counter.
A total of 5.35 lakh shares changed hands today on BSE, which was lower than Tata Motors' two-week average volume of 8.97 lakh shares. The turnover on the counter stood at Rs 22.45 crore. At this price, Tata Motors commanded a market capitalisation (m-cap) of Rs 1,38,597.44 crore.
There were 4.93 lakh sell orders today against buy orders of 2.64 lakh shares on BSE. On NSE, 70.76 lakh shares traded for a value of Rs 295.20 crore.
In a separate development, Tata Motors said it has approved the allotment of 30,831 shares of the face value of Rs 2 each under the Tata Motors Limited Employees Stock Option Scheme 2018 at an exercise price of Rs 345 per share.
Meanwhile, Indian equity benchmarks were trading slightly lower as losses in consumer goods and pharma countered gains in technology and metals. Sub-index Nifty Auto was also seen trading lower, down 0.42 per cent in early trade.
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