Tata Steel shares recover 25% from 52-week low; can they hit Rs 172 mark?

Shares of Tata Steel Ltd have recovered 25% from their 52-week low of Rs 95 reached on September 28, 2022. The Tata Group’s metal stock was trading at Rs 118.75 in today’s session on BSE. The Tata Steel stock hit its 52-week high of Rs 124.30 on January 19, 2023. The metal stock has lost 0.25% this year. On the other hand, Tata Steel shares have gained 10.60% in a year. The stock has delivered stellar 177% returns in the last three years.

In the current session, Tata Steel stock touched an intraday high of Rs 119.25 against the previous close of Rs 116.85 on BSE. Total 7.29 lakh shares of the firm changed hands amounting to a turnover of Rs 8.65 crore. Market cap of the Tata Group firm rose to Rs 1.45 lakh crore.

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In terms of technicals, the relative strength index (RSI) of Tata Steel stands at 48.2, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 1.2, indicating high volatility in a year. Tata Steel shares are trading higher than the 50 day, 100 day, 150 day, 200 day but lower than the 10 day, 20 day and 30 day moving averages.

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Here’s a look at the outlook of the Tata Group stock.

Progressive shares in a report said, "The stock has given a breakout from the Symmetrical Triangle Formation. RSI oscillator replicates price activity. The stock is about to start its trend as ADX stands at 19.75. As per symmetrical triangle breakout, the target comes to Rs 172. One can add the stock on declines to Rs 117."

Riches Vanara, Technical and Derivatives Analyst, StoxBox said has assigned a sell call with a target price of Rs 112-108. One can fix the stop loss at Rs 123.

"Tata Steel is trading in an ascending triangle pattern since June month and it has reversed facing resistance from the upper end of the said pattern and a follow up selling candle is seen. We feel it’s a sell candidate as MACD indicator is also showing some sign of bearishness. Hence, we recommend to sell at current levels and around Rs 119 for targets of Rs 112 and Rs 108 with stop above Rs 123," said Vanara.

Abhijeet from Tips2trades said, "Tata Steel is bearish on the daily charts with strong resistance at Rs 123 A close below the daily support of Rs 117 could lead to Rs 111 in the near term."

Tata Steel on July 24 reported a 92% year-on-year decline in its Q1 consolidated net profit (attributable to owners of the company) to Rs 633.95 crore against a profit of Rs 7,764.96 crore in the year-ago period. Consolidated net profit slipped 63% from Rs 1,704.86 crore in Q4FY23.