Why Voltas’ Record Sales Propel Tata Stock to New Heights?

Voltas, a part of the Tata Group, has been on an impressive journey, recently hitting a new 52-week high due to its remarkable performance in the cooling products market. In the fiscal year 2024, Voltas achieved a significant milestone by selling 2 million units of air conditioners, showcasing a 35% volume growth, which is a first in the industry.

This success can be attributed to several factors, including sustained demand for cooling products, a well-established offline and online distribution network, and the introduction of innovative new products.

Investment analyst Mandar Bhojane from Choice Broking sees further potential for Voltas stock, predicting up to a 42% increase in its value. He highlights the technical indicators, such as consistent higher highs and higher lows in the daily chart, along with robust trading volume, indicating a strong upward trend. The Relative Strength Index (RSI) is also showing an upward trend, suggesting significant buying momentum. Bhojane advises investors to consider holding their positions, with a trailing stop-loss strategy.

The overall trend for Voltas is bullish, supported by various technical indicators, leading to a target price projection of Rs 1900 in the near term. Bhojane suggests adopting a buy-on-dips strategy, capitalizing on potential retracements in the share price, with a recommended buying level around Rs 1,200 and a stop loss at Rs 1,059.

In simple terms, Voltas, backed by strong sales performance and positive technical indicators, seems poised for further growth, making it an attractive investment opportunity, especially for those willing to buy on market dips and hold for potential long-term gains.