Stocks to Buy: Tata Motors stock on a roll, gains 6 pct on Friday; Know why trends to remain bullish

Stock to Buy Tata Motors: Tata Motors stocks are on a roll and have gained by more than 6 per cent on the NSE on Friday from the previous close. At 2:45 pm, the stocks were trading at Rs 259.85. Technical Analyst Nilesh Jain is bullish on this stock and expects the stock to achieve a target price of Rs 350 over the next 6-8 months. The stock has seen a major breakout from the levels around Rs 241.

Jain said that the stock is seeing an impulse move. The stock has also been trading in record volumes over the week and has crossed 98 cr mark, Jain said. The technical analyst said that there is a lot of momentum in this stock currently.

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On Tuesday the stock was up by over 8 per cent on the back of strong Jaguar Land Rover December quarter sales which were up by over 13 per cent as compared to the previous quarter. The Jaguar Land Rover sales from China proving to be a shot-in-the-arm for the company.

In terms of charts, the placing now looks quite strong for this stock, he said. Levels around Rs 241, which were a strong resistance point have been decisively breached, he said. This stock has been trading below this level since June 2017. It is after almost three-and-half years and the 241 mark has been broken and this will be a big positive for this stock, he reiterated.

Top Triggers for Tata Motors

Jain said that the recovery in retail sales of Jaguar Land Rover were a result of strong numbers that emerged from China. There are some other underlying triggers which are propelling the stock. What these are, is not know now but are expected to soon emerge, he further said.

Moreover, its Tata Tiago model is also going from strength-to-strength, the analyst said. If more similar products are launched, then the momentum will continue, going forward.

He puts the target price at Rs 350. He said that he was bullish on this stock.