Technical Pick: Buy Tata Motors Stock For a Target Price Of Rs. 510

Prabhudas Lilladher, a leading brokerage firm, has given a buy call on a large-cap stock. The brokerage firm has given a trade on Tata Motors with a good risk-reward ratio.

Tata Motors has been on a clear uptrend for the past few weeks, the stock has a strong upside momentum, and it has the potential to reach the target price of Rs.510.

Here is a detailed breakdown of Prabhudas Lilladher's report on Tata Motors.

Outlook on Tata Motors

Tata Motors Group is a leading company in the automobile sector. The company is engaged in manufacturing and providing a diverse and wide range of sports utility vehicles, buses, trucks, cars, and defense vehicles. It operates worldwide, including in South Korea, China, Brazil, Slovakia, the UK, and many more places.

It is a large-cap company with over Rs. 161,951 Crores market capitalization. The stock's current market price is Rs. 453, which can go more than 12% to the upside from the current market price, as per Prabhudas Lilladher.

Buy Call of Prabhudas Lilladher on Tata Motors

According to the latest reports, "The stock after the short correction has bottomed out near 440 levels and has witnessed a decent pullback to improve the bias with currently moving past the confluences of significant moving average like the 200DMA and 50EMA at 452 zones indicating a "Golden Cross" to strengthen the trend.

The RSI also showing a trend reversal to signal a buy has made the chart look attractive with ample upside potential move anticipated in the coming days. We suggest to buy and accumulate this stock for an upside target of 510 keeping the stop loss at 435." Says Prabhudas Lilladher.

Technical Analysis of Tata Motors

As per the technical analysis, the stock looks strong in the larger time frame; after a rapid move to the upside, the stock is in a little correction phase from the past few trading sessions. Here are the positions of the indicators on the daily time frame of the chart of Tata Motors:

• The price of the stock is taking support in the 200 Moving Average after breaking above it.
• As per the Elliot wave theory, the stock price is at the end of the 4th wave of its smaller waves.
• The RSI is showing a range shift which means it is taking support in 40 and going to the upside, which is a bullish sign.
• The stock price is taking support in a crucial resistance and going to the upside.