Tata Motors shares hit record high, overbought on charts; target price, outlook and more

Shares of Tata Motors Ltd hit a record high amid a sharp correction in the market today. Tata Motors shares climbed 5.46% to a fresh high of Rs 886.30 in Tuesday’s trade. The multibagger scrip has gained 94.50 per cent in one year and risen 9.39% this year.

On BSE, around 7.44 lakh shares changed hands amounting to a turnover of Rs 7.30 crore today. Market cap of the firm rose to Rs 2.86 lakh crore. Tata Motors stock hit a 52-week low of Rs 400.40 on March 28, 2023.

JPMorgan has upgraded the Tata Group firm to overweight from the earlier stance of neutral. The brokerage revised its price target on Tata Motors to Rs 925 apiece. JPMorgan said one of the primary reasons behind the upgrade on Tata Motors was the better-than-expected margin and free-cash-flow (FCF) delivery at Jaguar Land Rover (JLR).

JLR reported a free cash flow of £300 million during the September quarter.

Tata Motors stock has a one-year beta of 0.4, indicating very low volatility during the period.

In terms of technicals, the relative strength index (RSI) of Tata Motors stood at 70.3, signaling it's trading in the overbought zone. Tata Motors shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Gaurav Bissa, Vice-President, InCred Equities said, "Tata Motors witnessed a 8-year breakout on the monthly charts around Rs 550-560 levels and has run up strongly since then. It has shown strong outperformance against its 4-wheeler peers. While the stock has potential to go higher, short-term traders are advised to book profits. The long-term targets are seen around Rs 900 levels where a cluster count target on point and figure charts is placed."

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 with a qualified financial advisor before making any investment decisions.

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