This Tata Group stock hits fresh one-year high, up 39% in 7 sessions; key technical levels to watch

Tata Group shares are on a bull run despite a muted performance in domestic benchmarks on Thursday. 22 out of the 25 listed Tata entities were last seen trading with sharp gains today. One such stock is Tata Investment Corporation Ltd. The counter continued its upward march for the seventh straight session. At 2:59 pm, Tata Investment's stock was locked in its 5 per cent upper circuit limit at Rs 9,744.40. At this price, the scrip has zoomed 39.49 per cent in seven trading days.

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.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 90.63. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 167.80 against a price-to-book (P/B) value of 2. Earnings per share (EPS) came at 55.31 with a return on equity (RoE) of 1.19.

Tata Investment, in response to a BSE query over a news item, recently clarified that it has not entered into any discussion for investment in any semiconductor manufacturing or operating activity.

On technical setup, support on the counter could be seen at Rs 9,450, followed by Rs 9,034 level.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 9,450 and resistance at Rs 9,800. A decisive close above Rs 9,800 level may trigger a further upside till Rs 10,500. Expected trading range will be between Rs 8,800 and Rs 10,500 for a month."

AR Ramachandran from Tips2trades said, "Tata Investment looks bullish but very overbought on daily charts with next resistance at Rs 10,000. Investors should book profits at current levels as a daily close below support of Rs 9,034 could lead to a downward target of Rs 8,230 in the near term."

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 on 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.