Tata Motors shares hit 52-week high, stock up over 70% in 2023; what's next: Rs 750 or 650?

Shares of Tata Motors rose 2.03 per cent in Thursday's trade to touch their one-year high level of Rs 685.25. The stock has gained around 72 per cent on a year-to-date (YTD) basis and 58 per cent in a year. Today's upward move in the share price came after index provider MSCI added nine stocks, including Tata Motors, to its index.

Separately, the carmaker's shares have been on the rise ahead of Tata Technologies' initial public offering (IPO), which is scheduled to open on November 22. Price band of the IPO, which is a first from the Tata Group in nearly two decades, has been fixed at Rs 475 to Rs 500 per share.

The IPO would have an offer for sale (OFS) of up to 6.09 crore shares from existing shareholders, including Tata Motors. The offering would open for bids for anchor investors on November 21, while retail investors can make offers between November 22 and November 24.

Analysts largely remained positive on Tata Motors. Two of them mentioned that the counter has immediate resistance around Rs 700 level. And, a decisive close above the said level can only push the stock further. One of the analysts also suggested that the scrip may see Rs 900-1,000 levels in a year.

Akshay Bhagwat, Senior Vice-President, Derivatives Research at JM Financial Services, selected Tata Motors as a long-term bet. "The stock could hit Rs 900-1,000 levels in a year. For risk management, keep stop loss placed at Rs 525," Bhagwat told Business Today TV.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has given a decent pullback to improve the bias and is on the verge of a breakout. Next initial target visible is near Rs 705 level and a further strength can push the price to Rs 740. The near-term support would be lying near Rs 634."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Tata Motors is in a well-established bull run. As we advance, Rs 700 would act as resistance, and support is expected near Rs 666. The counter may see some correction if it fails to cross the Rs 700 resistance zone."

AR Ramachandran from Tips2trades said, "Tata Motors is bullish on daily charts with next resistance at Rs 690. A daily close above this resistance could lead to target of 720 in the near term. Support will be at Rs 671."

As of September 2023, promoters held 46.38 per cent stake in the company. On BSE, around 10.91 lakh shares were last seen changing hands today. The figure was higher than the two-week average volume of 6.65 lakh shares. Turnover on the counter stood at Rs 74.13, commanding a market capitalisation (m-cap) of Rs 2,26,634.43 crore.

(Disclaimer: Business Today provides stock market news for informational purposes only and 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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