Tata Steel shares rebound 55% from 52-week low, here are fresh price targets

April 16,2024

Shares of Tata Steel have recovered 55% from their 52-week low touched in May last year. Tata Steel stock closed 1.38% lower at Rs 161.25 on Monday compared to the 52-week low of Rs 104.10 reached on May 19, 2023.  In today’s session, the Tata Group stock managed to hold the Rs 160 mark for the tenth straight session even as the stock market saw a huge sell-off amid rising Iran-Israel tensions.

Market cap of the firm fell to Rs 2 lakh crore on BSE.

The stock stands higher than the 20 day, 30 day, 50 day, 100 day, 150 day, 200 day and lower than the 5 day and 10 day  moving averages indicating that the stock is trading majorly in a bullish zone.

The metal stock looks set for higher price targets, said analysts if it manages to stay above the Rs 160 mark.

Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox said, “The stock witnessed selling pressure in the range of Rs 170-167, implying a barrier for the current upward trend. The underlying bias remains positive. However, the said range needs to be overcome to embark the fresh journey. On the downside, the stock has a support at Rs 160, which was its previous hurdle mark. Until the price defends this support, the reversal seems to be justified. The price action denotes more selling pressure if the stock fails to hold Rs 160. A breakout over Rs 170 would see stock headed to Rs 200 levels.”

Osho Krishan, senior analyst- Technical and Derivatives Research at Angel One sees support level for the metal stock at Rs 154.

 “Tata Steel has been in a cycle of higher highs – higher lows and is currently hovering near its 20 DEMA on the daily chart. However, post the recent strong traction, the counter seems to be entering the overbought territory and might attract profit booking in the near period. For now, the immediate support lies around Rs 154 zone, followed by strong around Rs 145. It is advisable to have a pragmatic approach and trail profits for the time being,” said Krishan

Shiju Koothupalakkal - Technical Research Analyst at Prabhudas Lilladher said, “The stock has been in a strong uptrend with series of higher lows formation on the daily chart and the recent move also witnessed a decent pullback from Rs 140 levels of the significant 50EMA level and resisted near the Rs 170 zone to indicate a higher high formation. With some further profit booking expected, the near term support is visible at around Rs 157 zone where it can consolidate and anticipate for a reversal. The next higher targets visible are at Rs 184 zone once the positive trend reversal is confirmed.”

In Monday’s session, total 51.02 lakh shares changed hands amounting to a turnover of Rs 82.20 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 64, signaling it's trading neither in the overbought nor in the oversold zone.

Tata Steel shares have rallied 50% in a year and gained 15% in 2024.

The Tata Group firm is likely to report a 40.5% fall in Q4 profit to Rs 1010 crore year-on-year but up 70% against Q3 of the previous fiscal, said Prabhudas Lilladher in its earnings preview note.

Net Sales are likely to fall 4.1 percent Y-o-Y (up 9.1 percent Q-o-Q) to Rs 60,360 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) may decline 14.6 percent Y-o-Y (down 1.6 percent Q-o-Q) to Rs. 6,160 crore, said the brokerage.