Before the Q2 report, Tata Motors shares decline. Ahead of Tata Technologies' IPO debut, experts recommend buying

 Before the Q2 report, Tata Motors shares decline. Ahead of Tata Technologies' IPO debut, experts recommend buying

Shares of Tata Motors: On November 2, 2023, Tata Motors Ltd. is anticipated to release its second quarter financial results for FY24. However, during Monday's trading, shares of the Indian automaker have been under pressure to sell before of Tata Motors' Q2 2023 results. 

The NSE saw an increase in the price of Tata Motors shares today, opening at ₹643.80 a share, but the profit booking trigger quickly caused the price to drop. Tata Motors shares fell over 3% on Monday during the Monday session, reaching an intraday low of ₹621.85 on NSE only minutes after the stock market opened.

Experts in the stock market state that shares of Tata Motors are now in base building mode. After the reversal in JLR data, they said that Maket is anticipating excellent Q2FY24 results from the Tata Group subsidiary. In addition, the market anticipates higher results from Tata Motors in the October–December 2023 quarter since the company is anticipated to gain from the launch of Tata Technologies' initial public offering (IPO) during this quarter. Tata Motors, a promoter of Tata Technologies Ltd., is anticipated to gain from the impending IPO, which is wholly OFS. They stated that festival sales, which occur in the October to December 2023 quarter, are also anticipated to help automakers, particularly Tata Motors Ltd.

Out of the 12 technical selections for the next three to four weeks, Tata Motors, HCL Tech, and Persistent

Prospects for Tata Motors' stock price

Avinash Gorakshkar, Head of Research at Profitmart Securities, advised investors in the Indian stock market to "buy on dips" and said, "Tata Motors shares are in base building mode ahead of Q2 results 2023." Nonetheless, Tata Motors shares had significant upward movement in FY24, rising from around ₹400 to ₹625 per share, before to entering the range-bound phase. Following a recent uptick in vehicle sales and a recent reversal in JLR figures, the market is anticipating robust Q2 results from Tata Group firms. So, positional investors should see this decline as a chance to purchase."

"Markt is expecting excellent earnings of Tata Motors Ltd to keep growing in October to December 2023 quarter as Diwali sales are projected to decrease in this quarter and auto companies are projected to benefit from rise in demand due to seasonal buying," a Profitmart Securities analyst said.

drive from the planned IPO

"Tata Technologies IPO will be in primary markets during October to the end of 2023 quarter and it may become available in the secondary marketplace in this quarter as well," said Arun Kejriwal, founder of Kejriwal Research as well as Investment Services. Since Tata Technologies' IPO is entirely of a foreign stock offering (FOS) and Tata Motors Ltd. is one of its sponsors, the net proceeds of the impending IPO will be recorded on Tata Motors Ltd.'s financial sheet. Because of this, the market anticipates that Tata Motors Ltd.'s finances would gain more if Tata Technologies' IPO enters India's main market."

Target share price for Tata Motors

Anticipating further gains in Tata Motors' stock, According to Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, Tata Motors shares have consistently broken out at the ₹530 and ₹600 levels on their monthly chart pattern. The stock continues to hold above ₹600 levels, and its monthly chart pattern is still favorable. Individuals who already own Tata Motors shares may hold the scrip with a trailing stop loss set at ₹600 per share, while new investors can purchase Tata Motors shares at the present market price with a stop loss set at ₹600 per share."

Expert Anand Rathi said that if Tata Motors' stock stays above ₹600, it may rise as high as ₹680. He continued by saying that if the ₹680 barrier is firmly overcome, the price per share might rise to ₹720 in the middle of the term.