Tata group stock rises over 2%. Should you buy?
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Rakesh Jhunjhunwala portfolio: Tata Motors share price today shot up over 2 per cent in early morning deals. The Tata group stock today opened with an upside gap of near ₹7.50 per share and went on ascend further and hit ₹511.50, its intraday high. According to stock market experts, this rise in Tata Motors shares can be attributed to Jaguar Land Rover’s multi-year strategic partnership with NVIDIA, for providing next-generation automated driving systems to the customers. They said that auto major share may give fresh breakout at ₹520 levels and hit ₹540 apiece levels in near term.
Speaking on the reason for rise in Tata Motors share price today; Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Today, Tata Motors shares are surging on short-term sentiment of Jaguar Land Rover’s multi-year strategic partnership with NVIDIA. However, overall trend for Tata Motors stock is positive as market is positive on auto sector stocks. As Tata Motors is Tata group company, which is a cash-rich group, GDP growth is expected to fuel its commercial vehicle sales leading to rise in its business volume. Apart from this, global economy is coming to its normalcy post-Covid and in that case Tata Motors overseas business in Europe and the US is expected to pick up in Q4FY22 and FY23. So, one should buy and hold the stock for one to two years for whopping return.”
Expecting fresh breakout in this Rakesh Jhunjhunwala portfolio stock; Sumeet Bagadia, Executive Director at Choice Broking said, “Tata Motors shares are looking positive on chart pattern and one can buy the stock at current levels for immediate target of ₹530 and ₹540. The stock may give breakout at ₹520 on closing basis and after this breakout, it is expected to enter in bull favourite zone in upcoming sessions.”
Suggesting investors to buy and hold the stock for medium term; Anuj Gupta, Vice President at IIFL Securities said, “After giving breakout above ₹520 on closing basis, Tata Motors share price may go up to ₹590 in medium term. However, one must maintain strict stop loss at ₹494 while taking position in this counter.”
Jaguar Land Rover has formed a multi-year strategic partnership with NVIDIA, the leader in artificial intelligence (AI) and computing, to jointly develop and deliver next-generation automated driving systems plus AI-enabled services and experiences for its customers.
Rakesh Jhunjhunwala share holding in Tata Motors
According to Tata Motors shareholding pattern for October to December 2021 quarter, Rakesh Jhunjhunwala holds 3,92,50,000 shares or 1.18 per cent stake in the company.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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