Buy, sell or hold? What should investors do with these Rakesh Jhunjhunwala owned stocks that hit 52-week high?

Indian market bounced back on Thursday following positive global cues, with over 300 stocks hitting fresh 52-week highs, including Rakesh Jhunjhunwala owned stocks – Tata Motors and Titan Company Ltd.

The big bull cumulatively holds a 4.8 per cent stake in Titan Company while in Tata Motors, Jhunjhunwala holds 1.1 per cent stake, according to the June quarter shareholding pattern.

Jhunjhunwala reduced the stake in both these companies on a quarter-on-quarter basis. He held a 5.1 percent stake in Titan, and 1.3 per cent stake at the end of June quarter, data from Trendlyne showed.
 

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Tata Motors has already doubled wealth for investors so far in the year. It has rallied by nearly 30 per cent in the last 1 month alone.
 
Tata Motors Limited announced its sales in the domestic & international market, for Q2FY22, which stood at 1,71,270 vehicles, compared to 1,10,345 units during Q2FY21.

The global investment bank, Morgan Stanley upgraded the stock rating recently to overweight amid positive outlook for its JLR, commercial vehicle, and passenger vehicle business.

Last week, the auto company reported a 26 per cent growth in domestic sales at 55,988 units in September 2021. The company had sold 44,410 units in the same month last year.

Titan company Q2 business update highlights a robust recovery and a strong performance across divisions, with the jewelry division reporting a 2-year CAGR of 32 per cent.

“Full unlocking and the upcoming festive/wedding season are likely to further boost revenues in the coming quarters and may offer more upsides, in our view,” Emkay Global said in a report.

“Factoring in the strong growth momentum, we increase our FY23/FY24 EPS estimates by 8-12%. Given the solid growth and earnings outlook, we raise our Sep'22 TP to Rs2,530 (from Rs2,000), valuing the stock at 65x Sep'23E EPS (from 55x Sep'23E EPS earlier). We retain Buy,” added the report.

Here's what Vishal Wagh, Research Head, Bonanza Portfolio, recommends investors should do with these stocks when the market resumes trading today:

TATA Motors:

The stock has had huge momentum in Thursday's trading session along with good volumes. It has been able to surpass its intermediate supply zone of 350-360, where multiple times the stock was facing resistance.

On the weekly timeframe, MACD is making a positive crossover and ADX has also begun to rise and showing a reading of 21.88.

Looking at the price action, the stock had taken support from its 200-Daily EMA and is making higher highs higher low formation. This trend is likely to continue for coming trading sessions on the expectation of a strong festive demand.

The immediate target for the stock is placed at Rs 450, and a stop loss can be placed below Rs 340.

Titan Company Ltd:

The stock has made a fresh all-time high on the back of strong quarterly updates lead to a buyer in jewellery names.

Since the stock is trading in uncharted territory, based on Fibonacci extensions, the probable targets arrive near 2560.

The trend is extremely positive and more importantly, it is likely to continue as indicated by ADX reading. Stock is trading well above its 21 Days EMA which is placed at 2117

MACD is showing no signs of weakness, although RSI has reached overbought levels so some amount of profit booking can be visible in coming trading sessions.

The stock can be bought now or on declines with a target of Rs 2560, and a stop loss can be placed below Rs 2210.  

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)