5 lesser-known Tata Group shares have surged up to 90% in 2024; what next?

TRF, Automotive Stampings, Oriental Hotels and NELCO can surge up to 24% from present levels, suggest technical charts. The trend, however, looks weak for Tejas Networks.

Tata Group stocks have been significant wealth creators for investors over time. Companies such as Tata Consultancy Services (TCS), Tata Motors, Tata Steel and Tata Consumer Products are household names in India.

Paying tribute to the former Tata Group chairperson Ratan Tata, investors should learn from the growth of the Tata Empire that a long-term investment horizon is required to really participate in the wealth creation that happens through the capital market, Dr. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services said in a note.

In a bull market like the present one, there will always be valuation concerns. But great companies like the ones Ratan Tata built will create wealth for investors in the long run, the note stated.

Tata Group stocks were seen trading on a mixed note today. In the calendar year so far, out of the 22 Tata Group listed companies on the National Stock Exchange (NSE) 13 stocks have outperformed the benchmark Nifty 50 index, with gains in excess of 20 per cent each. The Nifty 50, meanwhile, has surged 15.5 per cent thus far in 2024.

Among the Tata Group firms, flagship company TCS has surged more than 12 per cent. The company is scheduled to announce its Q2 results today. Trent with a gain of 169 per cent is the top gainer so far in this calendar year. Voltas and Indian Hotels are the other key movers - up 82 per cent and 58 per cent, respectively.

These apart, there are 5 lesser-known Tata Group stocks that too have outperformed the Nifty 50 so far this year. TRF has zoomed nearly 20 per cent. Automotive Stampings and Assemblies has soared 75 per cent. Oriental Hotels, Tejas Networks and NELCO have gained 45 per cent, 35 per cent and 25 per cent, respectively.

Against this background, here a technical outlook on 5 lesser-known Tata Group stocks:

TRF

Current Price: Rs 529

Upside Potential: 19.1%

Support: Rs 510; Rs 499

Resistance: Rs 533; Rs 603

TRF was locked at the 10 per cent upper circuit at Rs 529 in trades today. In the process, the stock has given a breakout above its super trend line on the daily scale. The stock, however, is seen trading near its key 100-DMA (Daily Moving Average) resistance at Rs 533. 

TRF stock will need to break and sustain above the 100-DMA in order to extend the up move. On the upside, the stock can potentially rally to Rs 630 levels, with interim resistance seen at Rs 603.

In case of a dip, the stock is expected to seek support around the 50-DMA at Rs 510 and the 20-DMA at Rs 499, shows the daily chart. CLICK HERE FOR THE CHART

Automotive Stampings and Assemblies (ASAL)

Current Price: Rs 735

Upside Potential: 20.4%

Support: Rs 722

Resistance: Rs 770; Rs 805

After a stellar run till July 03, shares of Automotive Stampings have taken a U-turn and corrected considerably. The stock now trades almost 36 per cent lower when compared to its peak of Rs 1,095. Despite this, the stock is still up 75 per cent for the calendar year.

Technical chart shows Automotive Stampings stock recently slipped below its long-term moving average (200-DMA). The price-to-moving averages action is also unfavourable on the daily scale. Thus hinting at likely tepid behaviour in the near-term. CLICK HERE FOR THE CHART

However, on the weekly chart, Automotive Stampings seems to be seeking support around its super trend line at Rs 722. As long as this support holds, the stock may look to revive or at least stage a short-term pullback. On the upside, the stock can jump to Rs 885; with interim resistance seen at Rs 770 and Rs 805 levels.

Oriental Hotels

Current Price: Rs 177

Upside Potential: 13%

Support: Rs 172

Resistance: Rs 186; Rs 191

Oriental Hotels stock gave a fresh breakout in late August, and since then the stock has been making higher highs and higher lows on the daily scale. At present, the stock is seen trading near its 20-DMA support of Rs 172; below which near support exists at Rs 168.

On the upside, the stock can potentially rally to the Rs 200-mark; with interim resistance expected around Rs 186 and Rs 191. CLICK HERE FOR THE CHART

Tejas Networks

Current Price: Rs 1,199

Downside Risk: 15.8%

Support: Rs 1,059

Resistance: Rs 1,295

Tejas Networks stock is seen struggling below the short-term moving averages in recent days. The stock needs to break and sustain above Rs 1,295 levels in order to revive the mood at the counter. For now, key support for the stock is seen around its 200-DMA at Rs 1,059 and Rs 1,010 levels. CLICK HERE FOR THE CHART

NELCO

Current Price: Rs 1,020

Upside Potential: 24%

Support: Rs 926

Resistance: Rs 1,070; Rs 1,120

Key momentum oscillators have turned favourable on the daily scale for NELCO in recent trading days. Hence, the stock is likely to attempt a pullback in the near-term. On the upside, the stock can potentially rally to Rs 1,265 levels; with interim resistance seen at Rs 1,070 and Rs 1,120. 

The key support for NELCO on the downside stands at Rs 926 - the 100-DMA; below which lies the 200-DMA at Rs 846 levels. CLICK HERE FOR THE CHART