Tata Stock To Buy: Not TCS, Or Tata Power, But This FMCG Stock Is 75th Republic Day Pick; 15% Upside Seen

Tata Group-backed stock is a top pick for the 75th Republic Day. An estimated 15% potential upside with target price above Rs 1,140 is on the radar.

Which stock? Its neither the biggies like Tata Consultancy Services (TCS) or power giant Tata Power, but instead FMCG arm Tata Consumer Products. This tea maker is currently below Rs 1,000 levels on BSE and NSE, while surged by over 8% year-to-date.

Republic Day Stock Pick:

Sumeet Bagadia, Executive Director at Choice Broking said that Tata Consumer, which is currently trading at Rs 990 levels, has broken out of an inverted head-and-shoulders pattern on the daily chart, signalling a bullish trend reversal. A sustained move above Rs 960 levels could propel the stock towards the targets of Rs 1,090 and Rs 1,140, with immediate resistance at Rs 1,027.

However, on the downside, critical support levels are identified at Rs 926 and Rs 900, which offers a strong base in the event of a pullback, Bagadia said.

Following a prolonged correction, Bagadia also said, the stock has rebounded from its support levels backed by improving technical indicators. The Relative Strength Index (RSI) currently stands at 62.87, indicating strong buying momentum and suggesting continued upside potential. He further said, this positive momentum, combined with the breakout pattern, makes the stock appealing to traders and investors seeking medium-term opportunities.

“Tata Consumer presents a compelling buying opportunity with price targets of Rs 1,090 and Rs 1,140. Investors can consider buying on dips around Rs 960. The combination of a strong chart pattern and bullish momentum indicators highlights the potential for further upside, while prudent risk management remains essential,” Bagadia lastly said.

Also, Tata Consumer is a weekly pick of brokerage SMC Global Securities.

SMC’s note said, “The stock closed at Rs.992.35 on 24th January, 2025. It made a 52-week low at Rs.882.90 on 20th December, 2024 and a 52-week high of Rs.1256.44 on 11th March, 2024. The 200 day Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1032.81.”

Furthermore, SMC added, that it has shown a notable recovery after hitting its 52-week low in December 2024, showing signs of investor interest. From a technical analysis perspective, the stock has formed a rounding bottom pattern, a classic reversal pattern that suggests the end of a bearish trend and the potential beginning of a bullish phase. Therefore, one can accumulate the stock in a range of 990-995 for the upside target of 1095-1110 levels with SL below 920 levels.

Tata Consumer Products Share Price:

Last Friday, Tata Consumer stock stood at Rs 991.80 apiece on BSE, up by 1%, with a market cap of Rs 98,134.51 crore. The stock’s 52-week high and low are Rs 1,254.36 apiece and Rs 884 apiece, respectively. YTD, the stock has zoomed by 8% on BSE so far.

About Tata Consumer Products:

TGBL, renamed to Tata Consumer Products, is home to well-loved brands – Tata Tea, Tetley, Tata Salt, Eight O’Clock Coffee, Himalayan Water and emerging brands like Tata Sampann, Tata Soulfull, Tata Gluco Plus and Tata Water Plus. The company’s brands are present in over 40 countries with a diverse workforce spread across the world.

This year, India is celebrating its 75th Republic Day which marks the adoption of the constitution of the country.

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