New Delhi, Jan 3 (IANS): The rally in Tata Motors shares continued in the New Year as they rose 3 per cent in the very first session of 2022.

The automaker's shares rose 160 per cent in the past one year period. On Monday, it settled at Rs 496.8 apiece.

Notably, automobile manufacturer Tata Motors' passenger vehicles vertical sold more units than Hyundai Motor India in December, and became the second largest seller after Maruti Muzuki during the month.

Tata Motors' total domestic passenger vehicle sales rose by 50 per cent to 35,299 units from 23,545 units off-take in December 2020.

While releasing the sales data for December, Shailesh Chandra, President, Passenger Vehicles Business Unit, Tata Motors, said that the ever-increasing demand for the EV fleet segment was instrumental in driving this steep growth.

According to Manoj Dalmia, Founder and Director at Proficient Equities, investors are recommended to ‘Buy on Dips' and Rs 520 is seen as a key resistance.

"Once it crosses (Rs 520 levels), there will be further moves towards Rs 550," Dalmia said.

In line with Dalmia's views, Ravi Singh, Vice President, Head of ResearchShareIndia, also sees Tata Motors' share price touching Rs 520-550 in the near-term.

"The technical setup is showing a bullish trend in the counter. Any dip or correction will be an opportunity for fresh entry," Singh said.

The Centre's electric push is expected to make its scrip more attractive as the company plans to launch more EVs in the days to come.