Tata Steel shares hit 52-week high, rise for sixth session; what’s next?

Shares of Tata Steel Ltd hit a fresh 52-week high in early trade amid a flat movement in broader indices. Tata Steel shares rose to a high of Rs 137.65 against the previous close of Rs 136.40 on BSE. Tata Steel stock opened higher at Rs 137.20 on Monday. During the session, the stock hit an intraday low of Rs 135.10. Market cap of the firm stood at Rs 1.68 lakh crore. Total 14.41 lakh shares changed hands amounting to a turnover of Rs 19.70 crore on BSE. Tata Steel stock fell to a 52-week low of Rs 101.60 on December 26, 2022. Tata Steel stock has a one-year beta of 0.2, signaling low volatility during the period.

In terms of technicals, the relative strength index (RSI) of Tata Steel stood at 77.2, signaling it's trading in the overbought 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.

tatasteel-share-price-361967">Tata Steel shares have rallied 117.06% in three years and risen 160% in five years.

Abhijeet from Tips2trades said, "Tata Steel is bullish but also overbought on the Daily charts with next resistance at 152. Investors should book profits at current levels as Daily close below support of Rs 133 could lead to target of Rs 118 in the near term."

Gaurav Bissa, Vice-President, InCred Equities said, "Nifty Metal witnessed a strong breakout on the weekly charts which pushed many of the metal names into a new zone. Tata Steel has been in consolidation for a while now with some underperformance against its peers. It has witnessed a bullish triangle pattern breakout on the weekly charts which can give a strong thrust to stock price. The RSI is trading near its previous swing high of 70 which once crossed can increase the pace of momentum and a bullish MACD crossover on the weekly timeframe is likely to ensure the trend remains strong."

Aditya Gaggar, Director of Progressive Shares said, "With a higher top higher bottom formation, the stock is in the primary uptrend and recently, it has given a breakout from a V-shaped pattern which was confirmed with a positive crossover in MACD. A reading of 29 in ADX is also indicating the presence of a strong underlying trend. As per the pattern breakout, the target arrives at Rs 155."

Vaibhav Kaushik, Research Analyst, GCL Broking said, "Margins of Tata Steel are expanding and demand appears to be improving. International markets are particularly supportive. Target for the stock is Rs 175."

Tata Steel reported a loss of Rs 6,511 crore in the September 2023 quarter against a net profit of Rs 1,297 crore a year ago. The steelmaker’s total revenue from operations came at Rs 55,681 crore against Rs 59,877 crore reported in the year-ago period.

JM Financial assigned a target of Rs 150 to the Tata Steel stock post Q2 earnings.

"India business reported a marginal decline QoQ in EBITDA/tonne to Rs 13.4 k/t on back of lower realizations, partially offset by lower coking coal cost. Europe continued to report EBITDA loss of $167/tonne vs. loss of $96/tonne in Q1 due to relining of BF in Netherlands. The company reported net loss of Rs 6200 crore after providing for one-off provisioning (UK) of Rs 6800 crore. Net debt during the quarter increased to Rs 77,000 crore (up Rs 5300 crore QoQ) on account of weak performance," said the brokerage.

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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