Brokerage firm Choice Broking’s executive director Sumeet Bagadia has picked Tata Chemicals stock to buy on Yoga Day 2024, with an upside potential of over 14 per cent.
Assigning ‘buy’ rating to the Tata Group stock, Bagadia has given the target price of ₹1270/1320.
“TATACHEM is presently trading at ₹1130. The stock has recently ready for breakout of Range on the daily chart with a significant increase in trading volume, indicating a potential breakout. A breakout above ₹1150 could drive the stock towards the 21270 & 21320 levels with immediate resistance at ₹1190. On the downside, ₹1100 & ₹1070 stand as critical support levels,” Bagadia said in a note.
Tata Chemicals share price was down 2.53 per cent to close at ₹1,124.75 on Friday’s trading session, on National Stock Exchange (NSE). Over the past one month, the scrip has gained over 3.43 per cent and over 11.40 per cent in the last six months.
“Moreover, following a prolonged correction, the stock has reversed from the support level. The Relative Strength Index (RSI) is currently at 58 indicating an upward trajectory and growing buying momentum. Taken together, these technical indicators suggest that TATACHEM has the potential to reach the ₹1270 & ₹1320 targets in the near term,” Bagadia said.
He further went on saying, “A prudent strategy would involve considering buying opportunities on dips around ₹1100 levels In summary, based on technical analysis and prevailing market conditions, TATACHEM appearsto offer a promising buying opportunity for those targeting a ₹1270 & ₹1320 price objective. It is essential to implement prudent risk management strategies to navigate potential market fluctuations.”
The Board of Directors of Tata Chemicals had declared a final dividend of ₹15.00 per equity share for the financial year 2024 and had set June 12 as the record date to determine the eligibility of shareholders for the final dividend.
In a stock exchange filing, Tata Chemicals said: “The Board of Directors had, at its meeting held on Monday, April 29, 2024, recommended a dividend of ₹15 per ordinary share of Rs10 each, subject to approval by the shareholders of the Company at the 85th AGM.”
For the fourth quarter ending March 31 of fiscal year 2024, Tata Chemicals Ltd reported a net loss of ₹818 crore, compared to a net profit of ₹694 crore in the same period the previous year.
Its consolidated profit after tax (before exceptional items and non-controlling interest) from continuing operations dropped to ₹145 crore in the reported quarter, down from ₹694 crore in the corresponding period of the prior year.
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Published: 21 Jun 2024, 05:31 PM IST
