Shares of Tata Steel hit their record high amid high volatility in the broader market on Tuesday. The metal stock rose 4.34% to Rs 175.20 on BSE. Market cap of Tata Steel stood at Rs 2.18 lakh crore. In terms of technicals, the relative strength index (RSI) of Tata Steel stood at 60.4, signaling it’s trading neither in the overbought nor in the oversold zone. The stock stands higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Read More: Quest Laboratories IPO allotment to be finalised today: latest GMP, 4 steps to check status
Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets said, “Tata Steel made a higher high formation on the daily chart, which is a sign of strength. The momentum indicator viz. MACD is positively poised and the stock is outperforming its benchmark index. One can buy the stock at current levels with a stop loss of Rs 155 for the targets of Rs 185 and Rs 195, respectively, in the next couple of weeks.”
Abhijeet from Tips2Trades said, “Tata Steel stock price is bullish but also overbought on the Daily charts with next resistance at Rs 182. Investors should keep booking profits as daily close below support of Rs 168 could lead to a fall till Rs 144 in the near term.”
Jigar S Patel, Senior Manager – Equity Research at Anand Rathi Shares & Stock Brokers said, “In the past few months, Tata Steel has been trading within the Rs 158- Rs 170 range. Recently, the stock has broken out of this range and is now comfortably trading above it. Technically, the target for Tata Steel is projected to be twice the consolidation range, approximately reaching the Rs 194 level. Moving forward, the Rs 170 mark will serve as a credible support level, while resistance is expected around the Rs 175- Rs 176 zone.”
Read More: Awfis Space Solutions IPO: Check Subscription Dates And Other Key Details Before Investing
Riyank Arora, Technical Analyst at Mehta Equities said, “The stock has achieved a significant breakout above its crucial resistance mark of Rs 172 and managed to close above this level. With the overall structure being positive and the RSI crossing the 65 mark, the momentum looks strong, and the stock should eventually head towards potential targets of Rs 185- Rs 190 in a momentum rally. A strict stop-loss should be set at the Rs 165 mark to manage risk effectively on this trade for Tata Steel.”
Kushal Gandhi, Technical Analyst, Stoxbox said, “The price of Tata Steel recorded a new life high of Rs 175 in today’s trading session after staging a double-bottom bullish breakout. The stock observes a high relative strength compared to the 50 index, improved buyers’ demand and lower volatility, diminishing the chances of an unruly move. We anticipate the momentum to continue on the upside and recommend buying Tata Steel for the target of Rs 191 with a protective stop loss at Rs 167.”
Aditya Gaggar, Director of Progressive Shares said, “In March, Tata Steel gave a breakout from the Rounding Bottom Formation, which was confirmed with a trendline breakout in RSI and an upsurge in volume. Trend following indicator MACD has already given a positive crossover and a reading of 25 in ADX further confirms the presence of the strong uptrend. As per the pattern breakout, the target is Rs 214.”
Read More: HOAC IPO Day 3: GMP Jumps, Subscriptions At 872x
On Tuesday, the Tata Steel stock opened higher at Rs 168.05 against the previous close of Rs 167.90 on BSE. Market cap of the firm stood at Rs 2.18 lakh crore. Total 56.47 lakh shares changed hands amounting to a turnover of Rs 97.17 crore on BSE. Tata Steel shares have rallied 66.94% in a year and risen 25% in 2024.
The Tata Group stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages indicating that the stock is in bullish zone. Tata Steel is yet to report its earnings for the quarter and fiscal ended March 2024.
The company reported Rs 515-crore profit in the quarter ended December 31, 2023 as against a loss of Rs 2,224 crore in the year-ago period as declining expenses more than offset lower revenue due to weak domestic prices.
Subdued local prices due to cheaper shipments from top producer China hurt India’s steelmakers in the October-December period, despite sustained domestic demand.
The steelmaker’s revenue fell 3% to Rs 55,312 crore in Q3FY24 as compared to Rs 57,084 crore in Q3FY23. Expenses slipped nearly 7% as costs of raw materials fell more than 22%.
In FY24, Tata Steel India clocked the highest ever annual crude steel production of 20.8 MT, rising 4 percent YoY by debottlenecking across sites and achieving higher steel production at Neelachal Ispat Nigam, and deliveries increased by 5.6 percent YoY to 19.9 MT.
