Tata Steel shares closed above Rs 160 mark for nine sessions; buy, sell or hold?

Shares of Tata Steel have held onto the Rs 160 mark for the ninth straight session (on a closing basis). The metal stock ended at Rs 163.50, down 1% on BSE in Friday’s trading session. The Tata Group stock, which struggled to hit the Rs 150 mark for long held onto that level for six sessions in March 2024. Subsequently, the Tata Steel stock breached the Rs 160 mark to clock record highs in April this year.

Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox said Rs 160 mark is its support level. On the upside, the stock could reach Rs 200 if it breaches Rs 170 level.

"The stock witnessed selling pressure in the range of Rs 170-167, implying a barrier for the current upward trend. The underlying bias remains positive, however, the said range needs to be overcome to embark the fresh journey. On the downside, the stock has a support at Rs 160, which was its previous hurdle mark. Until the price defends this support, the reversal seems to be justified. The price action denotes more selling pressure if the stock fails to hold Rs 160. A breakout over Rs 170 would see stock headed to Rs 200 levels," said Bagkar.

Abhijeet from Tips2trades said, "Tata Steel stock price looks bearish but also overbought on the Daily charts with strong resistance at Rs 169.  Investors should keep booking profits as a Daily close below support of  Rs 161 could lead to target of Rs 143 in the near term."

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock has been in a strong rally since last more than one year making new highs and currently also breaching the previous peak level of Rs 159 has indicated a clear breakout to enter a new territory with bias maintained strong. It has been trading above the important 50EMA moving average zone and with near-term support maintained near Rs 146 levels, we anticipate the stock to rally towards its next higher targets of Rs 184 and Rs 195 levels, respectively."

The Tata Group stock stands 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 shares rose 1.44% to a record high of Rs 169.75 on April 9. On Friday, the Tata Steel stock opened higher at Rs 166.95 against the previous close of Rs 165.15 on BSE. Market cap of the firm stood at Rs 1.05 lakh crore. Total 39.38 lakh shares changed hands amounting to a turnover of Rs 104.10 crore on BSE.

Tata Steel stock has a one-year beta of 0.9, signaling low volatility during the period. In terms of technicals, the relative strength index (RSI) of Tata Steel stood at 64, signaling it's trading neither in the overbought nor in the oversold zone.

Tata Steel shares have rallied 52% in a year and risen 17% in 2024.