Shares of Tata Steel Ltd rose 4% to hit their record high in early deals today after brokerage JP Morgan revised its target price on the Tata Group stock to Rs 170 from Rs 150. It also maintained its overweight call on the metal stock. The stock was the top gainer on Sensex, touching a high of Rs 157.40 against the previous close of Rs 151.35 on BSE.
Tata Steel stock opened higher at Rs 152.50. Market cap of the firm rose to Rs 1.93 lakh crore. Total 20.82 lakh shares changed hands amounting to a turnover of Rs 32.27 crore on BSE.
Tata Steel stock has a one-year beta of 0.7, signaling low volatility during the period.
Axis Securities has a buy call on the stock with a target price in the range of Rs 167 to Rs 177. Stop loss can be fixed at Rs 143.
“Tata Steel has breached the multi-year resistance around Rs 150 level on the weekly chart, suggesting a continuation of the medium-term uptrend. The previous resistance level of Rs 150 is anticipated to now serve as support, adhering to the principle of polarity, thereby establishing a supportive zone for the stock's price action. The stock is trending within an upward sloping channel, recently finding support at the lower band and now heading towards the upper band. The weekly Relative Strength Index (RSI) is in bullish mode, maintaining above an upward sloping trendline, supporting the upward price action. The above analysis indicates an upside towards the levels of Rs 167-177.”
In terms of technicals, the relative strength index (RSI) of Tata Steel stood at 63.2, signaling it's trading neither in the overbought nor in the oversold zone.
Tata Steel shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Shares of Tata Steel have rallied 112% in three years and risen 199% in five years.
Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox is very bullish on the the stock and believed that it is likely to hit Rs 185 level.
“The prevailing bias in the shares of Tata Steel suggests a bullish stance as long as the 50-SMA support of Rs 135 is defended. The breakout over the recent peak of Rs 147.40 could lead to visit of Rs 175-185 levels. Until that happens, one can accumulate the stock in the range of Rs 140 -135 zone,” said Bagkar.
Riyank Arora, Technical Analyst at Mehta Equities expects the stock rising towards Rs 160, and has given a target in a range of Rs 200-225.
"A major support lies at Rs 134, below which the stock would lose its strength. Any up move above Rs 147 should further push the rally towards Rs 153 and Rs 160, gradually pushing the stock towards a target price of Rs 200-225. The overall outlook remains bullish with a strict stop loss placed at Rs 134 on a daily closing basis," said Arora.
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