Tata Investment shares surge 49% in a month; what's next on technical charts?

Shares of Tata Investment Corporation Ltd rose 1.61 per cent in Tuesday's trade to hit a day high of Rs 7,188.40. At this price, the stock has gained 48.74 per cent in the past one month. From a broader perspective, the multibagger scrip has rallied around 196 per cent in six months and 259 per cent in the last one year.

The company has reported a 54.19 per cent jump in its third-quarter consolidated net profit (Q3 FY24), at Rs 53.24 crore, compared to Rs 34.53 crore in the year-ago fiscal. During the quarter under review, revenue from operations rose 34.23 per cent to Rs 50.55 crore from Rs 37.66 crore in Q3 FY23.

On the technical front, support on the counter could be seen at Rs 6,700. On the higher side, resistance may be found around the Rs 7,300 zone.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 6,700 and resistance at Rs 7,300. A decisive close above Rs 7,300 level may trigger a further upside till Rs 7,500. Expected trading range will be between Rs 6,500 and Rs 7,500 for a month."

AR Ramachandran from Tips2trades said, "Tata Investment is bullish but also very overbought on daily charts with next resistance at Rs 7,663. Investors should book profits at current levels as a daily close below support of Rs 6,700 could lead to a target of Rs 5,740 in the near term."

DRS Finvest founder Ravi Singh said, "The stock looked strong on daily charts. It has potential to hit Rs 7,300. Keep stop loss placed at Rs 7,050."

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.

Promoted by Tata Sons, Tata Investment is a non-banking financial company (NBFC) registered with Reserve Bank of India (RBI). Earlier named The Investment Corporation of India, the company is primarily involved in long-term investments such as equity shares and equity-related securities. As of December 2023, promoters held 73.38 per cent stake in the company.

The Tata Group firm also invests in units of mutual funds, bonds, and venture capital funds. Its subsidiaries include Simto Investment Company, Tata Asset Management, Tata Trustee Company, and Amalgamated Plantations.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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