Shares of Tata Motors and Tata Motors DVR (weighted voting rights) surged as much as 8% on the BSE in intraday trade on Monday after Tata Motors reported an 8% year-on-year rise in its global wholesale cars including Jaguar Land Rover (JLR) sold 361,361 units in the third quarter of fiscal 2023 (fourth quarter of fiscal 2023).

In a regulated exchange filing, the company said it sold 107,386 Jaguar Land Rovers wholesale in the fourth quarter of fiscal 2023 (including joint ventures in China), an increase of about 16% quarter-on-quarter. That compares with retail sales of 102,889 units, up 21% month-on-month and 30% year-over-year, with current orders of 200,000 units.

Following the developments, shares of Tata Motors surged 8% to Rs 472.30, hitting a new high in more than six months on the BSE. The stock is trading at its highest level since September 2022. Shares of Tata Motors DVR also surged 8% to Rs 235.45. In contrast, the S&P BSE Sensex was flat (up 0.04%) at 59,858 at 9:35 am.

Furthermore, the company informed that it expects positive free cash flow (FCF) of over £800 million (Rs 8,142 crore) for the fourth quarter (Q4FY23) and over £500 million (Rs 5,088 crore) for the entire year (FY23).

The stock has soared 18% over the past six sessions and, in the process, surpassed a key moving average on the daily time frame.

In fact, the stock is trading above the upper end of the Bollinger Bands on the daily chart, implying that the bias is likely to remain bullish as long as the stock stays above Rs 455.

On the weekly scale, the stock attempts to break above the trendline resistance at Rs 460, followed by the top of the Bollinger Band at Rs 469. Sustained trading above this level can help the stock rebound towards Rs 500-510 levels on the upside, as the monthly chart suggested.

On the other hand, if the stock breaks below the opening gap of Rs 452 today, it may correct above Rs 435 to fill the gap.