Stocks to Buy: Tata Motors share price was trading up almost 8 per cent on NSE on Tuesday on the back of a strong December quarter sales which were up by over 13 per cent as compared to the previous quarter. Jaguar Land Rover sales from China are proving to be a shot-in-the-arm for the company. Technical Analyst Nilesh Jain is bullish on this stock and expects the stock to achieve a target price of Rs 350 over the next 6-8 months. Tata Motor stock is currently trading around Rs 237.90.
Top Triggers for Tata Motors Share
Jain said that the recovery in retail sales of Jaguar Land Rover were a result of strong numbers that emerged from China. Moreover, its Tata Tiago model is also going from strength-to-strength, the analyst said. If more similar products are launched, then the momentum will continue, going forward.
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In terms of charts, the placing now looks quite strong for this stock, he said. Levels around Rs 241 are crucial and if this is breached a 40 per cent upside from here is open. This stock has been trading below this level since June 2017. There will be a trend reversal once this level is crossed, he further said. There are strong chances that there is a breakout and that will trigger a rerating. If the stock ends above Rs 241, it will be after almost three-and-half years and this will be a big positive for this stock.
He puts the Tata Motors target price at Rs 350. He said that he was bullish on this stock.
What Investors should watch out for?
Jain said that there could be some profit booking in Tata Motors stock as it has come from the levels around 179 to around Rs 240. If there is a profit booking, it should be seen as an opportunity to buy this stock.