Tata Steel shares in a free fall; price targets, technicals & more

Shares of Tata Steel Ltd are in a free fall since June last year. The stock is down 41% from its 52-week high of Rs 184.60 reached on June 18 ,2024. The Tata Group stock is trading near its 52-week low of Rs 122.60 reached on January 13 this year. Tata Steel shares are in a downtrend in the short term indicate their simple moving averages.

The stock is trading lower than the 20 day, 30 day, 50 day, 100 day, 150 day, 200 day moving averages day and 10 day moving averages.

In a year, the stock has fallen 1%. Tata Steel shares have rallied just 9.30% in two years and 6.08% in three years.

However, Tata Steel stock has shown signs of recovery with a marginal rally of 2.39% in a week.
The stock gained 2% to Rs 131 in the afternoon session today. Market cap of the firm stood at at Rs 1.62 lakh crore. Total 15.24 lakh shares changed hands amounting to a turnover of Rs 19.67 crore on BSE. The Tata Group stock has a one-year beta of 1.4, signaling high volatility during the period.

The relative strength index (RSI) of Tata Steel stock stands at 35.1, signaling it's trading neither in the overbought nor in the oversold zone.

ICICI Securities has a BUY rating on Tata Steel shares. Tata Steel shares have potential to reclaim 2024's high, the brokerage said adding that it has set a target price of Rs 190 for Tata Steel stock.

The brokerage in its note said the duration of safeguard duties of 4 years, as requested by the appellants, is likely to ensure that upcoming capacities are fully absorbed, leading to structural improvement in operating environment, benefitting especially JSW Steel and Tata Steel.

Antique Broking and JM Financial have price target of Rs 175 on the Tata Steel stock.

AR Ramachandran, SEBI registered Independent analyst said, "Tata Steel is bullish on the Daily charts with strong support at Rs 127. A Daily close above the resistance of Rs 131 could lead to a target of Rs 144 in the near term."

Centrum Broking has a price target of Rs 168 on the Tata Steel stock.

Kushal Gandhi, Technical Analyst, StoxBox said, "The share price of Tata Steel has been under significant selling pressure, resulting in pronounced downswings characterized by a pattern of lower highs and lower lows. The stock has declined nearly 30% from its record highs, failing to maintain levels above the critical support near Rs 153, which previously served as the bullish breakout zone of an extended rounding bottom pattern. Currently, the stock is trading below 200 and 50 Daily moving average (MA) and 50 WMA, with these levels likely to act as overhead resistance."

"The price action is now at a crucial juncture, with immediate support identified at 200 WMA, presently around Rs 126 levels. A break below this support could trigger further selling pressure. Additionally, the stock displays a significant lack of earnings per share strength, price strength compared to its performance over the past year, relative strength in comparison to Nifty50, as well as diminished buyer demand and sector strength. On the sectoral front, the metal index has entered a distribution phase and is trading below the key demand zone, with shorter-term weekly moving averages acting as overhead resistance. Therefore, we recommend refraining from purchasing Tata Steel in the current market environment," added Gandhi.

Global brokerage JP Morgan has maintained its over-weight stance on Tata Steel, with a price target of Rs 180 per share.

Jigar S Patel, manager at Anand Rathi said, "Support will be Rs 126 and resistance at Rs 133. A decisive move above the Rs 133 level may trigger a further upside of Rs 138 . The expected trading range will be between Rs 125 to Rs 138 in the short-term."

Axis Securities has assigned a price target of Rs 175 on the Tata Group stock.

"In FY25, consolidated sales volume is expected to increase by 1-1.4MT, led by 1.1MT from KPO-II, 0.2 MT from NINL, partially
offset by the shutdown at one of the BF at Jamshedpur for relining in Q4. Indian profitability will improve as the KPO-II ramps up and will add 3.5-4MT/5MT in FY26/27. Cost at KPO-II will come down by Rs 3-4k/t as it ramps up fully by FY27 due to operating leverage with its expansion from 3 to 8 MTPA," said Axis Securities.