Today's stock market: While investors await the news of Tata Technologies' IPO allotment status, Tata Motors shares saw buying interest from Dalal Street bulls during early trades. This aided Tata Motors' shares in extending their surge and reaching a new all-time high of 702.80 per share on the NSE. While soaring to this new high, Tata Motors' share price today managed to offer a YTD return of more than 75% to its positional investors. However, stock market analysts believe Tata Motors' share price will reach $945 a share in the medium to long term.
According to stock market experts, Tata Motors shares are rising for a variety of reasons, including increased sales of Jaguar and Range Rover. They stated that the market is anticipating a solid listing of Tata Technologies' IPO, which is a 100% offer for sale (OFS). Tata Motors is likely to benefit from this offer for sale because it is selling its stake in Tata Technologies' IPO. Experts predict that increased sales of premium versions and a higher listing price for Tata Technologies' IPO will enable Tata Motors to generate solid quarterly results in the future quarters.
Why are Tata Motors' shares so high?
Saurabh Jain, Vice President of Research at SMC Global Securities, highlighted the causes driving Tata Motors shares, saying, "Tata Motors is expected to benefit from increased sales of Jaguar and Range Rover." Aside from that, the corporation managed to boost its margins in the recently announced Q2 2023 numbers. Another reason is the IPO listing of Tata Technologies, as the market anticipates a good launch of this Tata group company's shares on Friday, i.e. tomorrow."
The IPO of Tata Technologies is in the spotlight
According to Avinash Gorakshkar, Head of Research at Profitmart Securities, "Tata Technologies IPO is completely OFS and thus net proceeds of the public issue are expected to fuel the balance sheet of Tata Motors as the auto major is offloading its stake in Tata Technologies IPO." Because Tata Technologies' IPO listing price is likely to be approximately an 80 to 85 percent premium, the market expects significant support for further improvement in the company's margins and other fundamentals in the following quarters."
Share price target for Tata Motors
Sumeet Bagadia, Executive Director at Choice Broking, commented on the prognosis for Tata Motors shares, saying, "Tata Motors shares are currently trading at 700 apiece levels." On the Weekly chart, there has been a recent strong breakout of range, followed by robust volume. The monthly chart shows the emergence of a significant inverted head and shoulders pattern, indicating the possibility of good returns in both the short and long term, with price targets of 800 and 945.
"To effectively manage risk, a stop-loss (SL) at 670 is recommended." This protection is critical to protect your money in the case of a market downturn. In conclusion, given the technical analysis and current market conditions, Tata Motors appears to present an appealing buying opportunity for those aiming for a 745 price goal, provided appropriate risk management procedures are implemented," Sumeet Bagadia stated.
