Shares of multibagger Tata Motors have risen 117% from their 52-week low in a year. The auto stock, which fell to a 52-week low of Rs 474.60 on May 2, 2023 rose to a high of Rs 1029.95 in Thursday’s trade on BSE, more than doubling in a year. The benchmark Sensex has gained 22% during the period. However, the Tata Motors stock is down 3% from its 52 week high of Rs 1065.60 reached on March 5, 2024. The stock has seen very less volatility in the last one year, signals its one year beat of 0.5. In terms of technicals, the relative strength index (RSI) of Tata Motors stood at 58, signaling it's trading neither in the overbought nor in the oversold zone.
Tata Motors shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages, signaling strong investor interest in the Tata Group stock.
In the current session, Tata Motors shares gained 2.19% to Rs 1029.95 against the previous close of Rs 1007.85 on BSE. The multibagger auto stock has climbed 114% in a year and risen 30% this year.
On BSE, around 2.83 lakh shares changed hands amounting to a turnover of Rs 28.98 crore oday. Market cap of the firm rose to Rs 3.41 lakh crore.
Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox is bullish on the stock and has a price target of Rs 1150 on the Tata Group stock.
“Shares of Tata Motors are scaling higher levels, as the key support of the 50- daily moving average (DMA) set at Rs 982 continues to upkeep the positive bias. The trend is pointing towards Rs 1150, indicating a new all-time high in the following sessions. The strength oscillator, Relative Strength Index (RSI) has yet to hit the overbought territory, suggesting more space for upside. Only consecutive closes beneath Rs 982 could disrupt the short-term positive trend. The broader outlook aims at exploring newer uncharted territories, displays weekly and monthly charts,” said Bagkar.
Abhijeet from Tips2trades said, "Tata Motors stock price is bullish on the daily charts with strong support at Rs 984. A daily close above the resistance of Rs 1047 could lead to target of Rs 1110 in the near term."
Ganesh Dongre, Senior Manager - Technical Research Analyst, Anand Rathi Shares and Stock Brokers said, “On the daily chart, Tata Motors has given a symmetrical triangle pattern breakout, which is bullish in nature. Also on the other technical parameter, RSI is also inching in upward direction. Traders can buy this stock with a stop loss of Rs 990 for the target price of Rs 1080."
Tata Motors reported a 31% year-on-year (YoY) rise in sales of its commercial vehicles and a 2% YoY increase for passenger vehicles. Tata Motors sales in the domestic and international market for April 2024 stood at 77,521 vehicles compared to 69,599 units during April 2023, rising 12% YoY.