Shares of Tata Elxsi have slipped a little over 12 per cent on a year-to-date (YTD) basis but have gained around 28 per cent in the past one year. On Monday, the stock shed 0.03 per cent to settle at Rs 7,694.85.
Last month, the Tata group firm collaborated with Telefónica to achieve true cloud-native infrastructure management and revolutionise the telecommunications landscape. Before this, it had announced a strategic partnership with Accuknox, the developer of a cloud-native security solution NIMBUS.
Tata Elxsi is a subsidiary of Tata Sons, holding company of the Tata Group. It provides design and technology services across industries including automotive, broadcast, communications, healthcare and transportation.
It aims to help customers reimagine their products and services through design thinking and the application of digital technologies such as IoT (Internet of Things), cloud, mobility, virtual reality and artificial intelligence.
Technical analysts largely said the counter has been consolidating for some time. Support could be seen at Rs 7,350. Resistance may be found at Rs 7,840 and a decisive breach above the said level is required for further upside. One of them also suggested accumulating the stock at current levels. That said, the other analyst mentioned that a decisive breakthrough on either side of the Rs 7,400-7,900 range can only dictate the near-term trend.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The stock has been consolidating for the past couple of months with no clarity in the trend. It is awaiting triggers to come out of the slumber phase. The range is Rs 7,400-7,900 for the counter and a decisive breakthrough on either side could only dictate the intermediate trend."
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has been in the consolidation phase for some time between Rs 7,400 and Rs 7,900 levels with good support maintained near the Rs 7,350 zone. There is a tough resistance at Rs 7,840, which needs to be breached decisively for confirmation of a further upward move.”
Koothupalakkal also said that the stock’s RSI (Relative strength index) is well placed and on the rise. “It has potential to rise in the coming days. Once a decisive move past Rs 8,120 is confirmed, the overall bias would improve. One can start accumulating this stock for an upside target of Rs 8,500-8,800, keeping a strict stop loss near Rs 7,200 level," he further stated.
As of December 2023, promoters held a 43.92 per cent stake in the company.