This Tata Group company's shares down 9% in two days; time to buy, sell or hold?

Shares of Tata Investment Corporation Ltd extended their fall for the second straight session in Tuesday's trade. The stock slipped 4.07 per cent to hit a day low of Rs 3,139.05. At this price, the scrip has tanked 8.86 per cent in just two days. Despite the mentioned fall, the counter has gained more than 28 per cent in the past one month. Analysts largely attributed the recent dip in share price to profit booking.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The stock has seen a stellar rally of nearly 40 per cent in the last couple of trading weeks to clock new lifetime highs. The rally was backed by robust volumes. Post the vertical rally, the counter entered the overbought territory. Therefore, a possibility of cool-off/profit booking should not be ruled out. On levels front, the psychological support of Rs 3,000 should act as immediate support, followed by Rs 2,900. Till the mentioned levels are firmly withheld, we might witness a follow-up buying interest in the counter from a short to medium-term time frame."

Market expert Ravi Singh said, "The stock may continue its uptrend after profit booking. The RSI (Relative Strength Index), MACD (Moving Average Convergence/Divergence indicator) and long-term MAs are suggesting a target of Rs 3,500 level in near term."

AR Ramachandran from Tips2trades said, "The stock looks very overbought yet bullish. Investors should book profits at current levels."

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The counter traded lower than the 5-day simple moving averages (SMA) but higher than the 10-day, 20-, 30-, 50-, 100-, 150- and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 67.68. 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 67.98 against a price-to-book (P/B) value of 0.85.

The scrip has a one-year beta of 0.84, indicating low volatility.

Bourses BSE and NSE have put the securities of Tata Investment under the short-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.

On BSE, around 11,000 shares changed hands today. The figure was lower than the two-week average volume of 53,000 shares. Turnover on the counter stood at Rs 3.50 crore, commanding a market capitalisation (m-cap) of Rs 15,988.11 crore.

Promoted by Tata Sons, Tata Investment is a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI). Formerly known as The Investment Corporation of India, the company is primarily involved in investing in long-term investments such as equity shares and equity-related securities. As of June 2023, promotors held a 73.38 per cent stake in the firm.

It also invests in units of mutual funds, bonds, and venture capital funds. The company's subsidiaries include Simto Investment Company, Tata Asset Management, Tata Trustee Company and Amalgamated Plantations.

(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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