Long-Term Trade: Tata Motors Shares Could Rally 35%, Says SEBI RA Kush Ghodasara

Tata Motors' stock rose nearly 5% on Wednesday. This surge is attributed to two significant developments: the overwhelming shareholder approval for the company's demerger plan and the positive implications of the recently signed India-UK Free Trade Agreement (FTA).

Tata Motors shareholders voted in favor of a strategic plan to split the company into two separately listed entities — one focusing on passenger vehicles, including the luxury brand Jaguar Land Rover (JLR), and the other on commercial vehicles. 

Additionally, the India-UK FTA is expected to benefit Tata Motors, particularly its JLR brand, by reducing tariffs on automobile exports to the UK. This development enhances the company's export potential and profitability in one of its key markets.

SEBI-registered analyst Kush Ghodasara notes that the stock has been underperforming both the Nifty 50 and Nifty Auto indices for a prolonged period.

However, it has now formed a solid base around ₹618, aligned with its 200-week moving average — a level last seen in January 2021, just before a significant multi-month rally.

From a technical standpoint, Ghodasara highlights that Tata Motors closed above its 10- and 15-week exponential moving averages, a long-term bullish sign. 

Momentum indicators show early strength with a positive Relative Strength Index crossover and upward trend, and a bullish MACD crossover (though still below zero), suggesting a sentiment shift and potential accumulation.

Based on these observations, Ghodasara sees Tata Motors as an attractive long-term buy at current levels, with suggested upside targets of ₹740 and ₹920. 

He recommends a stop-loss at ₹610 to manage downside risk.

Tata Motors shares have lost 9% year-to-date (YTD).

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on