Tata Steel shares: After marginal fall from 52-week high, is the Tata Group stock headed toward Rs 150 mark?

Shares of Tata Steel Ltd have clocked a marginal loss of 5% from their 52-week high in a month. The Tata Group stock, which touched a record high of Rs 134.85 on September 18, 2023, was trading at Rs 127.50 in the current session on BSE. Tata Steel shares were trading on a flat note in the afternoon session today against the previous close of Rs 127.35. Market cap of the firm stood at Rs 1.55 lakh crore.

Tata Steel stock has gained 6.58% in 2023 and risen 26.34% in the last one year. The iron and steel sector stock, which slipped 10% in the last two years has delivered 222.67% in three years. The stock hit a 52 -week high of Rs 134.85 on September 18, 2023 and a 52-week low of Rs 98.15 on November 1, 2022.

Total 7.37 lakh shares of the firm changed hands amounting to a turnover of Rs 9.41 crore. The stock has a beta of 1.2, indicating high volatility in a year.

In terms of technicals, the relative strength index (RSI) of Tata Steel stands at 54, signaling it's neither trading in the overbought nor in the oversold zone. Tata Steel shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day but lower than the 30 day moving averages.

The dip in Tata Steel shares from the 52 week high offers an opportunity to those who missed the bus earlier, said analysts.

Religare Broking has a target of Rs 140 for the Tata Group stock. “In line with other metal majors, Tata Steel has formed a fresh buying pivot, after marginal retracement from its recent high. We believe this dip is an opportunity for those who missed the chance earlier and expect a steady rebound from hereon. One can buy the stock in the range of Rs 127.50-128.50 with a target price of Rs 140 and a stop loss of Rs 122,” the brokerage said in a note.

ICICI Securities has maintained an add call to the stock with a target price revision to Rs 150 from the earlier Rs 135.

"The development around Tata Steel UK is likely to ensure the future readiness of the business from both profitability and ESG perspective. We expect both additional restructuring costs and policy support as consultation process picks up. Taking cognizance of better operating prospects of Tata Steel UK and reduced support from the parent, we raise our valuation multiple to 6x (earlier 5.5x),resulting in a revised target price of Rs 150 (earlier Rs 135). Maintain ADD rating on Tata Steel stock,” the brokerage said.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher expects Tata Steel stock to hit the target of Rs 150 level.

"Tata Steel stock has resistance near Rs 135 zone and it's cooling off to some extent with near-term support at Rs 123 level. A decisive breach above Rs 135 zone shall trigger a breakout with next expected target of Rs 145-150 levels," said Parekh.

Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets suggested a hold stance for the Tata Group stock. One can fix a stop loss of Rs 118 for a target price of Rs 139-145.

"On the daily chart of Tata Steel, we are observing a sideways move and are giving no clear direction of trend. At present, the stock has good support at Rs 122-120 level. Even the momentum indicator, RSI is trading sideways. However, the stock is outperforming the benchmark indices. Hence, one can hold the stock at current levels with a stop loss of Rs 118 for targets of Rs 139-145 levels in the next couple of weeks," said Vasudeo.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart was of the view that one could hold Tata Steel for a target price of Rs 142. Stop loss of Rs 123 should be fixed.

"Tata Steel witnessed a breakout of a triangle formation on the daily chart. It retested its previous breakout and started a new leg of rally towards Rs 135 level. The overall structure looks good for short-term trade as it is trading above its key moving averages. On the higher side, Rs 135 is the susceptible level; above this, Rs 142 is the near-term target for the counter. Place a stop-loss at Rs 123," said Gour.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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