Tata Technologies share price: Profit booking triggers. Experts list out 5 reasons to avoid buying rush | Mint
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Business News/ Markets / Stock Markets/  Tata Technologies share price: Profit booking triggers. Experts list out 5 reasons to avoid buying rush
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Tata Technologies share price: Profit booking triggers. Experts list out 5 reasons to avoid buying rush

Tata Technologies share price: Due to narrow down in valuation gap against peers, newly listed Tata group shares have limited upside possibility, say experts

Tata Technologies IPO: Date of subscription will open on 22nd November 2023 and price band of the public issue has been fixed at ₹475 to ₹500 per equity share. (Photo: Courtesy company website)Premium
Tata Technologies IPO: Date of subscription will open on 22nd November 2023 and price band of the public issue has been fixed at 475 to 500 per equity share. (Photo: Courtesy company website)

Tata Technologies share price: After strong debut on Dalal Street, shares of Tata Technologies Ltd witnessed some profit booking during early morning session on Friday. Tata Technologies share price today opened upside and went on to touch intraday high of 1,348 apiece levels on NSE, delivering to the tune of 170 per cent return to those Tata Technologies IPO allottees who remained invested with the stock after dream debut at Indian stock market. However, experts believe that an investor who missed to get Tata Technologies shares via share allotment process.

Stock marekt experts believe that valuation gap of Tata Technologies shares against its peers has narrowed down after strong listing. Apart from this, Tata Technologies IPO was completely OFS (Offer for sale), hence net proceed of the public issue won't have any impact on company's financials.

Also Read: Nifty 50 hits all-time high led by banks, metals, auto stocks

Why you shouldn't buy Tata Technologies shares

Here we list out top 5 reasons for not buying Tata Technologies shares aming post-listing euphoria:

1] Tata Technologies IPO net proceeds: "Tata Technologies IPO was 100 per cent OFS in nature. So, net proceeds of the public isue even after strong response by primary market investors and dream debut on Dalal Street, balance sheet of the newly listed Tata group company would remain unaffected due to IPO's success. So, one should not rush for Tata Technologies share buying in current profit booking trigger," said Avinash Gorakshkar, Head of Research at Profitmart Securities.

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2] Tata Technologies share price valuations: Avinash Gorakshkar of Profitmart Securities said that Tata grouop stock is trading at higher valuations after stron debut and the valuation gap against its peers has narrowed down after Tata Technologies IPO's stellar success. So, possibility of further upside in Tata Technologies shares are limited.

3] Tata Technologies share price outloot: Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, "Tata Technologies share price has broken down below its support of 1299 apiece levels. So, the stock is expected to remain under selling pressure till the post-listing euphoria ends. So, one should wait till the stock stabilizes."

4] Over crowded primary market: Arun Kejriwal went on to add that current primary market of India is over crowded and it is expected to lose its steam any time from now. So, in the case of dent in IPO market sentiments, recetly listed stocks are expected to undergo selling pressure. Once the selling gets over, all stocks are expected to become available at fair valuations.

5] Stock market optimism: Arun Kejriwal also added that Tata Technologies and some other public issues get benefit of optimism in the secondary market. As most of the Indian indices are either trading at record high or close to life-time high, fresh entury won't be a wise decision. Hence, fresh investors should wait for over all profit booking trigger on Dalal Street or say trend reversal at Indian stock market.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 01 Dec 2023, 12:38 PM IST
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