Tata Steel shares trading above Rs 160 mark for second straight session; here’s what analysts say

Shares of Tata Steel Ltd rose to their record high for the second straight session on Tuesday. The metal stock is trading above the Rs 160 mark for the second session today. The Tata Group stock is trading 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 165.45 in early deals on Tuesday. On Monday, the stock touched a record high of Rs 163.90 on BSE.

Tata Steel stock opened higher at Rs 163.40 in the current session against the previous close of Rs 163.10 on BSE. Market cap of the firm rose to Rs 2.03 lakh crore. Total 16.64 lakh shares changed hands amounting to a turnover of Rs 27.19 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 68.4, signaling it's trading neither in the overbought nor in the oversold zone.

Tata Steel shares have rallied 56.36% in a year and risen 17% in 2024.

Here’s a look at what analysts said on outlook of the stock.

Rahul Ghose, CEO, Hedged.in said, "Tata Steel has been in a stellar uptrend for four months with the best part of the rally being the healthy corrections happening from time to time. From the fundamental perspective, the stock is currently not cheap on valuations anymore and also the company has a high debt-to-equity ratio. On the technical side, momentum is on its side and hence the stock can still move up 4 to 5%. Entry level around these levels for a 4-5% upside keeping a stop loss of Rs 151 can be done."

Shreyansh V.Shah, Research Analyst, StoxBox said, "Though Tata Steel reported substantial losses in its European operations in 9MFY24, the management has guided higher realizations and better volumes which will further improve the financials of the company on a consolidated level. With the hiving of its UK plants, the company is strategically focusing on its domestic operations where they are seeing more visibility in their topline growth. We feel the company can easily achieve the target of Rs 173."

KKunal V Parar, VP of Technical Research and Algo, Choice Broking said, "The monthly chart exhibits a compelling breakout from the flag formation, indicative of robust bullish momentum. This breakout has catalyzed a substantial uptrend, characterized by sustained price action above all significant long-term moving averages, underscoring the stock's inherent strength. Further bolstering this bullish narrative is the stock's traversal into uncharted territory, accompanied by robust volume activity, signaling a synchronized bullish sentiment among market participants. Adding to the confluence of bullish indicators is the monthly RSI, which maintains its trajectory along an upward sloping trend line, underscoring the enduring strength of the uptrend. In light of this comprehensive technical backdrop, our analysis projects a compelling upside potential for the stock, with a targeted range spanning from Rs 211 to Rs 247. Downside protection is anticipated around the 140 mark, acting as a formidable support level amidst potential retracements."

Abhijeet from Tips2Trades said, "Tata Steel stock price looks bullish on the daily charts with strong support at Rs 156. A daily close above the resistance of Rs 167 could lead to a target of Rs 181 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."