Karvy Stock Broking Limited has maintained ‘Buy’ rating on Tata Motors stock with an intraday target of Rs 654.

According to Karvy, day traders can purchase the stock above Rs 640-642 with a stop loss of Rs 632. If the stock market remains on positive track, the next target for the day will be above Rs 655.

Shares of the company, on Thursday (April 24), closed at Rs 638.7, up Rs 3.4, on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 116,538. The share price has seen a 52-week high of Rs 840 and a low of Rs 535 on BSE.

The outlook for the stock is really very strong, and it is expected to move up on the back of huge volumes.

According to an announcement, Tata Motors seeks to acquire stake in Pininfarina SpA, the Italian designer of Ferraris and producer of niche vehicles.

The Italian firm will open an engineering venture in India with Tata by 2008 end, in which Tata’s will hold minority stake.

Last month Pininfarina SpA announced to sell USD 153 million of new shares to existing investors and French billionaire Vincent Bollore as it seeks to break even next year.

On March 26, Tata Motors signed up a definitive agreement with Ford for purchase of Jaguar Land Rover including brands, plants and Intellectual Property Rights. The transfer of ownership to Tata Motors is likely to finish close by the end of the coming quarter, subject to applicable regulatory approvals. The total amount to be paid in cash by Tata Motors for Jaguar Land Rover upon closing will be approximately US $2.3 billion.

Other stocks from the same sector that looks good for short-term trading includes Ashok Leyland, Eicher Motors and Swaraj Mazda.