Tata Motors share price surges 4% intraday on strong December sales data; should investors buy, sell or hold?

Tata Motors share price soared nearly 4 per cent to Rs 500.80 apiece in intraday deals on Monday.

Tata Motors
Analysts seem to be bullish on Tata Motors stock post strong December month sales.

Tata Motors share price soared nearly 4 per cent to Rs 500.80 apiece in intraday deals on Monday. This surge in stock price came after the company reported a 50 per cent jump to 35,299 units in total passenger vehicle sales in December 2021. The stock ended at Rs 498.60 apiece, up 3.4 per cent. The company had sold a total of 23,545 units in the same month a year ago. Analysts say that for the year 2022 Tata Motors stocks should be on radar as they might be a smart play in automobile space. “Tata Motors stock might touch levels of Rs 700 in this calendar year and is our preferred bet in the automobile sector,” Harsh Patidar, Auto Analyst, CapitalVia Global Research, told Financial Express Online.

Analysts seem to be bullish on Tata Motors stock post strong December month sales. “Following a strong December sales figure, Tata Motors share price is poised to touch the levels of Rs 520-550 in near terms. The technical setup is showing a bullish trend in the counter. Any dip or correction will be an opportunity for fresh entry,” Ravi Singh, Vice President, Head of Research, ShareIndia Securities said.

In the quarter ended December 2021, Tata Motors said its total passenger vehicle sales stood at 99,002 units as compared with 68,806 units sold in the same period in the previous year, up 44 per cent. “If we look at the monthly sales figures of the auto sector, they are in line or as expected. However, Tata Motors sales figures have surpassed our expectations, making it a smart purchase for the target of Rs 525 and a stop loss of Rs 470,”Ravi Singhal, Vice Chairman, GCL Securities, said.

Tata’s electric vehicle sales have been gaining a steady on-year growth, while the total MHCVs sale in the third quarter of the current fiscal, including MHCV Truck, Buses and International Business, stood at 26,329 units compared to 21,476 units in the corresponding period of the previous year. EV touched 5.6 per cent of total vehicle sales this year. “Buy On dips and accumulate, Rs 520 is a key resistance once it crosses there will be further moves towards Rs 550,” Manoj Dalmia, Founder and Director, Proficient Equities, said.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

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