Tata Motors shares rise most on Sensex, overbought on charts; what’s next?

Shares of Tata Motors Ltd rose the most on Sensex in early deals in the first session of 2024 today. Tata Motors stock gained 1.95% to a high of Rs 796 on BSE. Tata Motors stock opened higher at Rs 786.70 on Monday. Market cap of the firm rose to Rs 2.63 lakh crore. Total 6.52 lakh shares changed hands amounting to a high turnover of Rs 51.59 crore on BSE. Tata Motors stock hit a 52-week low of Rs 381 on January 6, 2023 and a record high of Rs 802.50 on December 29, 2023

tatamotors-share-price-362362?utm_source=topic&utm_medium=topic&utm_campaign=topic">Tata Motors stock has a one-year beta of 0.2, indicating very low volatility during the period. In terms of technicals, the relative strength index (RSI) of Tata Motors stood at 75.3, signaling it's trading in the overbought one. Tata Motors shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The auto stock has surged 104.59% in a year.

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said," The stock after the clear breakout above Rs 735 has once again maintained the strong uptrend with next target visible at Rs 820 levels and thereafter with strength sustaining can achieve the Rs 880 zone. The near term support is at Rs 760 zone."

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."

Also read: Tata Motors shares hit record high today; can the rally continue in 2024?

Abhijeet from Tips2trades said, "Tata Motors stock price is bullish but also overbought on the Daily charts with next resistance at Rs 838. Investors should book profits at current levels as a Daily close below support of Rs 760 could lead to Rs 695 in the near term."

The Tata Group firm reported a net profit of Rs 3,764 crore in the September quarter against a loss of Rs 944.61 crore in the September 2022 quarter. Revenue climbed 32% to Rs 1.04 lakh crore in Q2 against Rs 78,846 crore in the corresponding period of the preceding fiscal. Operating margin in percentage terms rose to 13.19% in the September quarter against 7.67% in the September 2022 quarter.

EBITDA surged 86.4% to Rs 14,400 crore.

Earnings per share rose to Rs 9.81 in Q2 against (minus) Rs 2.47 in the September 2022 quarter. Debt to equity ratio fell to 2.23 in Q2 of this fiscal against 5.21 in the September 2022 quarter.

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.

Also read: Vodafone Idea shares soar 39% in just two sessions; key technical levels to watch

Also read: Stock recommendations by market analyst for January 1, 2024: Dabur India, Suven Pharmaceuticals and Samvardhana Motherson