As anticipation builds for the Tata Technologies IPO allotment status, Tata Motors shares experienced significant buying interest, reaching a new all-time high of ₹702.80 per share on NSE. This surge has yielded over a 75% return for positional investors year-to-date, with market experts foreseeing further upside, projecting Tata Motors share price to potentially reach ₹945 in the medium to long term.
Several factors contribute to the ascent of Tata Motors shares, including an increase in the sales of Jaguar and Range Rover vehicles. Market expectations for a robust listing of the Tata Technologies IPO, which is a 100% offer for sale (OFS), are also driving positive sentiment. With Tata Motors divesting its stake in the Tata Technologies IPO, analysts anticipate that the auto major will benefit from the strong offer for sale. The combination of rising sales of premium variants and a favorable listing price for Tata Technologies IPO is expected to contribute to strong quarterly performance for Tata Motors in the upcoming quarters.
Saurabh Jain, Vice President of Research at SMC Global Securities, highlighted the improvement in margins in Tata Motors’ recently announced Q2 2023 results as another factor supporting the upward trajectory of the company’s shares.
Regarding the impact of the Tata Technologies IPO on Tata Motors, Avinash Gorakshkar, Head of Research at Profitmart Securities, explained that as Tata Technologies IPO is entirely an offer for sale, the net proceeds from the public issue are expected to bolster Tata Motors’ balance sheet. The positive listing price for Tata Technologies IPO, anticipated at a significant premium, is expected to provide substantial support for further enhancement of the company’s margins and fundamentals in the coming quarters.
Looking ahead, Sumeet Bagadia, Executive Director at Choice Broking, indicated that Tata Motors shares are currently trading at ₹700 apiece levels. A recent strong breakout on the weekly chart, coupled with robust volume, suggests positive returns in the short and long term. The formation of a significant inverted head and shoulders pattern on the monthly chart supports the potential for positive outcomes, with price targets set at ₹800 and ₹945. To manage risk effectively, Bagadia recommended implementing a stop-loss at ₹670, emphasizing the importance of prudent risk management measures in the event of unexpected market reversals. Overall, Tata Motors shares present an appealing buying opportunity based on technical analysis and current market conditions.
In summary, the surge in Tata Motors shares is attributed to improved sales, margin expansion, and positive expectations surrounding the Tata Technologies IPO, setting the stage for a potentially strong performance in the coming quarters.
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