Shares of Tata Steel are trading nearly 30% higher to their 52-week low hit last year. The metal stock reached an intraday high of Rs 106.80 in the current trading session against the 52 week low of Rs 82.71 it hit on June 23, 2022, translating into a gain of 29.12% during the period. Tata Steel stock has remained highly volatile in the last six months. The Tata Group stock, which ended at Rs 103.10 on September 19, 2022, was trading at Rs 105.20 in the afternoon trade today. On January 19, 2023, the stock closed at a six-month high of Rs 123.5 on BSE. Since then, it has majorly traded in the downward trajectory.
In the current session, the Tata Steel stock was trading on a flat note. Total 7.69 lakh shares of the firm changed hands amounting to a turnover of Rs 8.15 crore. Market cap of the Tata Group firm stood at Rs 1.28 lakh crore.
In terms of technicals, the relative strength index (RSI) of Tata Steel stands at 39.7, signaling it’s neither trading in the overbought nor in the oversold territory. The stock has a beta of 1.3, indicating very high volatility in a year. Shares of Tata Steel are trading higher than the 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.
In the third quarter of the current fiscal, Tata Steel reported a net loss of Rs 2,502 crore as against net profit of Rs 9,598 crore in the year-ago period on account of higher expenses. The company’s revenue from operations fell 6% to Rs 57,084 crore in Q3FY23 as compared to Rs 60,783 crore in Q3FY22.
Here’s a look at what brokerages and analysts said about the outlook of Tata Steel stock.
Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher said, “Tata Steel after the correction witnessed has come near the significant 200DMA level of Rs 105 and witnessed a consolidation at that zone to suggest bottoming out for the stock and with a pullback visible is anticipated to carry on with the positive move still further ahead. The RSI has indicated a trend reversal from the oversold zone and is well placed at current price rate. We expect the stock to move ahead for initial target of Rs 115 and thereafter Rs 124-127 zone if it breaches Rs 115 zone decisively.”
Abhijeet from Tips2trade said, “Tata Steel has a strong support at Rs 101. A daily close above Rs 125 should trigger a strong uptrend till Rs 165 over a longer term period.
Brokerage Jefferies has assigned a Buy call on Tata Steel with a target price of Rs 145 apiece.
“For Tata in particular, the European business (TSE) contributes just Rs 11 per share of EV to our price target of Rs 145. We see the recent underperformance as a buying opportunity in Indian metals; our top pick is Tata, followed by Hindalco,” the brokerage said.
Brokerage and research firm BOBCaps said it prefers Tata Steel with a target price of Rs 140. The brokerage has Buy rating on Tata Steel.
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