Tata Technologies shares rise for third session, up 4% today despite Axis Capital's bearish outlook

Shares of Tata Technologies, the Tata Group’s global engineering services firm, rose for the third straight session on Thursday. 
The stock climbed 4% to Rs 1089 against the previous close of Rs 1048.40 on BSE. The rally in the Tata Group stock comes despite Axis Capital initiating coverage with a 'reduce' call citing weak prospects for the counter.It has assigned a price target of Rs 950 for the stock. 

The brokerage believes that there is no respite e on growth cuts for the company even as VinFast ramp-down headwinds ebb ahead.

“Anchor-client concentration is likely to increase, reversing recent progress,” said the domestic brokerage firm in its note.

The brokerage firm cited high valuations of the Tata Group firm despite its underperformance on a year-to-date basis.

Total 1.10 lakh shares of the firm changed hands amounting to a turnover of Rs 11.79 crore. Market cap of the firm rose to Rs 43,327 crore on BSE. 

In terms of technicals, the relative strength index (RSI) of Tata Technologies stands at 45, signaling it's trading neither in the overbought nor in the overtrading zone. Tata Technologies shares are trading lower than the 10 day, 20 day, 30 day, 200 day but higher than the 5 day, 50 day, 100 day and 150 day moving averages.

In the first quarter of this fiscal, Tata Tech reported a net profit of Rs 162.03 crore, down 15.4 percent from the year-ago period. Sequentially, the profit was marginally higher than Rs 157.24 crore in the March quarter, the Tata group company said in an after-market filing on July 18.