Shares of Tata Steel Ltd have surged 33% from their 52-week low in less than a year. Tata Steel stock, which fell to a 52-week low of Rs 101.65 on March 29, 2023 surged to Rs 135.75 on Friday, delivering 33.75% returns during the period. Tata Steel shares hit an intraday high of Rs 136.20 on Friday. The stock, which scaled a record high of Rs 142.15 on January 1, 2024 has lost 3% since then.
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Tata Steel shares ended on a flat note at Rs 135.50 in the current session. Tata Steel stock opened higher at Rs 135.95. During the session, the stock hit an intraday low of Rs 134.64. Market cap of the firm stood at Rs 1.66 lakh crore. Total 46.15 lakh shares changed hands amounting to a turnover of Rs 62.63 crore on BSE. On NSE, Tata Steel stock ended flat Rs 135.45.
Tata Steel stock has a one-year beta of 0.4, signaling low volatility during the period.
In terms of technicals, the relative strength index (RSI) of Tata Steel stood at 54.5, signaling it’s trading in the neither in the overbought nor in the oversold zone. Tata Steel shares stand higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Tata Steel shares have rallied 95.02% in three years and risen 14.78% in a year.
Kotak Institutional Equities has fixed a target of Rs 145 but changed its rating to reduce from Buy.
The risk reward on the Tata Steel stock has turned unfavorable, said Kotak Institutional Equities, which has cut its rating on the stock to ‘Reduce’ from ‘Buy’ but increased its share price target on the same to Rs 145 from Rs 140 earlier.
Kotak said Tata Steel has seen a 20 per cent rally in the past two months, mainly led by broader market buoyancy. But at the same time, fundamentals have deteriorated at the margin, with raw material outperforming steel prices, suggesting a downward pressure on India’s spreads from 4QFY24. Kotak said there is a persistent pressure in Europe’s steel spreads while there i sa risk of delay in UK’s resolution and completion of the KPO-II 5 mtpa expansion.
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“We see risk-reward at the current price unfavorable after the recent rally. We increase our FV to Rs 145 (from Rs 140) on roll-forward and downgrade our rating to REDUCE (from BUY),” Kotak said.
Laxmikant Shukla, Technical Research Analyst at YES Securities has fixed a target of Rs 153. One can fix a stop loss of Rs 127.
“Tata Steel shares are showing signs of a revival. The formation of higher top-bottom on the daily chart, along with a bullish candle at lower levels, is indicating trend reversal. The scrip earlier saw severe beating where prices declined from a high of Rs 137 to all the way down to Rs 127. Momentum indicators such as stochastic have given bullish crossover, which also suggest a pullback move. One can initiate a buy trade in Tata Steel at Rs 135-137 for the target of Rs 153 with stop loss of Rs 127 on a daily closing basis,” said Shukla.
Prabhudas Lilladher said, “In the case of Tata Steel Ltd, it cut its FY24/25E Ebitda estimates by 9 per cent each, given weak Tata Steel spreads plus high repairs/maintenance expenses at Tata Steel UK and downgraded the rating for the stock to ‘Accumulate’ from ‘Buy’ but suggested a higher target of Rs 140 from earlier Rs 138 despite factoring in higher-than-expected losses from TSE in the near term.”
Aditya Gaggar, Director of Progressive Shares sees the stock at Rs 188 in the near term.
“Tata Steel Ltd is in an ascending channel and recently, has given a breakout from a reversal pattern known as inverted head and shoulder formation which was confirmed with a trendline breakout in the leading oscillator RSI. Trend-following indicators such as MACD and ADX confirm price activity. As per the Inverted Head and shoulder breakout, the medium to long-term target arrives at Rs 188,” said Gaggar.
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Abhijeet from Tips2trades said, “Tata Steel is sideways to bearish on the Daily charts with strong resistance at Rs 142. A daily close below the support of Rs 131 could lead to a target of Rs 115 in the near term.”
