Sensex reaches 60,800 for the first time, Nifty exceeds 18,150, led by Auto, Metal Shares; Tata Motors zooms in 21%


Tata Group is the main beneficiary of the EV theme, says Meena of Swastika Investmart

“There is a history of turnaround throughout the Tata Group since N Chandrasekaran joined the group as Chairman of the Tata Group,” said Santosh Meena, head of research, Swastika Investmart Ltd.

The Tata group is the main beneficiary of the EV theme because it benefits from an asset allocation and an allocation of strategic assets. The Tata group has performed very well on the EV theme with good synergy from Tata Motors, Tata Chemical and Tata Power, Meena said.

“Tata Motors is doing very well in the photovoltaic segment and has gained more than 10% market share while Maruti is losing its market share at the same time. Tata Motors’ valuations are still cheap compared to Tesla, Maruti and other global electric vehicle giants despite a big rally where the recent investment of the TPG group could lead to a serious revaluation of the meter, ”added Meena.

Tata Chemical is working very aggressively towards lithium-ion battery and Tata Power could be a leader in electric vehicle infrastructure in the country. The long-term outlook for all three stocks is very bullish, but some interim corrections cannot be ruled out, he said.

“Investors should remain invested in these meters and any correction should be seen as a buying opportunity,” he added.

Technically, Tata Motors is resuming its bullish momentum after a break in the bullish flag formation where it could head to the next major obstacle 550 and it could see a correction or consolidation around the 550 level. On the downside, 440-420 will be the first support zone while 400-380 will be the critical demand zone, according to Meena.

Meena said Tata Chemical is trading in uncharted territory and could head towards the 1,500 level in the next 6-8 months, but 1,200 could be an immediate hurdle. On the downside, 1,000 should be the baseline now.

“Tata Power entered a multi-year bull market after breaking the 100 mark, but hit our average target of 225 too early, so we can expect consolidation or profit taking,” Meena said. The overall texture is bullish and the stock may see further rise towards levels of 300 or above. Therefore, investors should stay invested while any 185-175 correction zone will provide a great buying opportunity, he added.

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