Tata Investment shares have delivered multibagger returns in three years. The Tata Group stock, which has zero debt was in news this week after board of the firm announced its Q1 earnings and approved a stock split.
The board cleared a stock split in a ratio of 1:10. Tata Investment stock has rallied 182% in two years, 381% in three years and 825% in five years.
The multibagger stock was trading on a flat note at Rs 7078.60 on BSE. Total 6633 shares changed hands amounting to a turnover of Rs 4.73 crore on BSE. Later, the stock ended 0.67% lower at Rs 7,089.50 in the current session. Market cap of the firm stood at Rs 35,869 crore.
The multibagger stock is overbought on charts with a RSI of 70.6. The RSI has crossed the 70 mark signalling there are more buyers than sellers in the stock.
Tata Investment shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Tata Investment shares slipped to a 52-week low of Rs 5147.15 on February 17, 2025 and rose to a 52 week high of Rs 8075.90 on August 28, 2024.
Technical analysts are mostly bullish on the prospects of the Tata Group stock, citing patterns and charts indicating a reversal from the short term bearishness.
Jigar S Patel from Anand Rathi said, “Support will be at Rs 7,000 and resistance at Rs 7,500. A decisive move above the Rs 7500 level may trigger a further upside of Rs 7700. The expected trading range will be between Rs 7000 and Rs 7700 in the short-term.”
Dhupesh Dhameja, derivatives analyst, Samco Securities said, “Tata Investment is currently in the process of forming the right shoulder of a classic Inverse Head and Shoulder pattern on the weekly chart, a setup widely considered a precursor to bullish trend reversals. The stock is now consolidating just below the neckline, which also aligns with the 0.50 Fibonacci retracement level, making this a crucial resistance zone.
On the technical front, the stock maintains its position above the 20-week exponential moving average (20-WEMA), and the Relative Strength Index (RSI) on the daily, weekly, and monthly charts continues to hold firm above 60, reflecting strong momentum and sustained bullish sentiment.
A decisive breakout above Rs 7,500, backed by rising volumes, would act as a confluence of technical and fundamental triggers, accelerating the stock’s upward trajectory. With the right shoulder formation nearing completion and the stock already under accumulation, such a move would validate the bullish reversal and potentially set the stage for a sharp rally.
Traders and medium-term investors may consider initiating long positions only after a confirmed breakout above Rs 7,500, with a protective stop loss at Rs 6,740 and a target of Rs 9,000, offering a favorable risk-reward setup of nearly 1:2.”
Kunal Kamble, Sr. Technical Research Analyst at Bonanza Porfolio said, “Tata Investment is making a Higher High-Higher Low formation, which indicates an uptrend in the security. The stock has an immediate resistance placed at Rs 7415, which will raise a question for buyers and attract sellers to actively sell at this level. A price closing above Rs 7415 would be an opportunity to buy the security, as it will be a breakout trade. The price is trading above the Ichimoku Cloud, Base Line, and Conversion Line, which indicates an uptrend in the security.
On the momentum front, the RSI is moving in the northern direction, supporting the price action. On the directional front, DI+ is trading above DI-, which indicates an uptrend in the security, and ADX trading above DI- indicates strength in the upmove. The stock is trending positive, and a conditional buying can be done in the security with a price close above Rs 7415, with a stop loss of 6980 for an upside target of Rs 8250- Rs 8400.”
Ravi Singh, SVP – Retail Research, Religare Broking said, “On the daily chart, the stock has given a strong bullish breakout from an ascending triangle pattern and break above the strong resistance zone of Rs 7500-7550, however prices have failed to decisively close above this level. The stock has maintained a consistent uptrend and trade above the rising trend line, characterized by higher highs and higher lows formation.
Additionally, the stock is trading above the key moving averages of 20-day and 50-day EMAs, indicating strength and continuation of the bullish momentum. The daily RSI is placed near 70, and 14-Day ATR is 220, indicating expanding volatility. Considering this technical structure, investors are advised to adopt ‘buy on dip’ strategy and build fresh long positions near Rs 7000-7050, targeting an upside potential of Rs 7350 to Rs 7600 in the upcoming trading sessions, with a strict stop-loss below Rs 6750 to protect against downside risk.”
AR Ramachandran, SEBI registered Independent analyst says, “Tata Investment stock price is bullish on the Daily charts but also overbought with next resistance at Rs 7745. Investors should be booking profits as a daily close below the support of Rs 7075 could lead to a target of Rs 6476 in the near term.”