18 Aug , 2021 By : Kanchan Joshi
Amid Indian indices slowly but steadily peaking news highs, three Tata group stocks — Tata Steel, Nelco and Tata Elxsi — have also registered stellar gains in recent trade sessions. In the last one month, Tata Steel share price has shot up around 18.50 per cent, Tata Elxsi shares went up around 11 per cent while Nelco stocks skyrocketed near 36 per cent. According to experts, reason for rise in these Tata group shares can be attributed to the better business outlook for the respective sectors they belong. They said that Tata Steel share price rise is due to the metal prices doubling in the last one year while Nelco and Tata Elxi belongs to IT sector where volume of business is expected to shot up post-Covid. They predicted further rise in these Tata group stocks.
Speaking on the reasons rise in these Tata group stocks; Ravi Singhal, Vice Chairman at GCL Securities said, "Tata Steel shares have been rising for the last one year as metal prices, especially steel price has almost doubled in the last one year. This rise in steel metal price has led to rise in revenue of the company leading to reduction in its debt. Tata Elxsi and Nelco are IT companies and business volume of It companies are expected to shot up post-Covid as companies are going to invest heavily in the IT sector. Apart from this, there is one more reason for rise in Tata Elxsi shares as it is in the electric vehicle designing. Since, Indian government is putting extra focus on the electric vehicle segment; the stock is rising on expected benefit from this Indian government's focus on the electric vehicle segment."
Expecting further rise in these Tata group stocks; Sumeet Bagadia, Executive Director at Choice Broking said, "Tata Steel, Tata Elxsi and Nelco is looking highly bullish on chart. One can buy and hold these Tata group counters. An investor should buy and hold Nelco shares for the upside target of Rs550 to Rs560. However, one must maintain strict stop loss at Rs470 while taking position in this counter."
On Tata Elxsi share price outlook, Sumet Bagadia of Choice Broking said that one can buy the counter for the upside target of Rs5000 maintaining stop loss at Rs4500 as the counter has strong support at Rs4500 to Rs4550 levels.
Sumeet Bagadia said that an investor can buy Tata Steel shares at current market price for the target of Rs1550 to Rs1580. He said that the metal stock has strong support at Rs1450 to Rs1470. So, one should maintain stop loss at Rs1450 while taking position in Tata steel counter.
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