Huge jump in Tata Investment Corporation share price, can touch the high of 9765.85

Tata Investment Corporation Ltd, a subsidiary of Tata Sons, saw a sharp uptick in its share price on Tuesday, surging over 12% to hit a day high of Rs 6,969.65. The stock was last seen trading 12.73% higher at Rs 6,957.65, gaining 63.39% on a year-to-date (YTD) basis. The bourses BSE and NSE have put the securities of Tata Investment under the long-term ASM (Additional Surveillance Measure) framework, likely due to the high volatility in share prices.

Kranthi Bathini, Director of Equity Strategy at Wealth Mills Securities, attributed the strong buying interest in holding companies to their attractive relative valuations at current levels. Tata Investment shares also saw a strong upmove in sync with this trend.

Tata Investment Corporation: A Subsidiary of Tata Sons

Tata Investment is a subsidiary of Tata Sons, the holding company of the Tata Group. It invests in a portfolio of quoted and unquoted securities of companies, including Tata Companies, which are engaged in various businesses. Holding companies usually don’t have operations of their own but own investments in other listed entities, particularly within the same group.

Technical Analysis: Support and Resistance Levels

Technically, the near-term support on the counter could be seen at Rs 6,500. A decisive close above Rs 7,000 is required for more upside. Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, said, “Tata Investment has seen a strong spurt in price and volumes after a long haul. The counter seemed under substantial consolidation but with the recent spurt, mojo appears to be returning.

The Rs 6,200-6,100 zone is likely to act as strong support, while on the higher end, a decisive breakthrough above the Rs 7,000-sub zone is expected to trigger the next leg of rally towards the Rs 7300-odd zone in the comparable period.” Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “Support will be at Rs 6,500 and resistance at Rs 7,000. A decisive close above Rs 7,000 level may trigger a further upside towards Rs 7,200. The expected trading range will be between Rs 6,500 and Rs 7,200 for the short term.”

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Analysts’ Recommendations

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, suggested that the stock looked strong on charts and can hit an upside target of Rs 7,000 in the near term. Singh also mentioned that investors should keep a stop loss placed at Rs 6,500.

Recent Developments

In a recent development, the Tata Group has received approval to set up two semiconductor plants in India. This news has further fueled the buying interest in Tata Investment Corporation shares, as the company is part of the Tata Group and stands to benefit from these new ventures.