For most of 2023, Tata Steel Ltd shares moved in a range. The Tata Group shares, which closed at Rs 122.60 on January 18, 2023, closed at Rs 127 on the BSE on Monday. Tata Steel stock is up 6.50% in 2023 and 27% in the last year. The metal stock, which lost 7.55% in the previous two years, has returned 222.42% in three years. On September 18, 2023, the stock reached a 52-week high of Rs 134.85 and a 52-week low of Rs 98.10 on October 17, 2022.
The metal stock of the Tata Group concluded the current session 1.60% higher at Rs 127, compared to the previous closing of Rs 125 on the BSE. A total of 15.38 lakh shares of the company were traded, resulting in a turnover of Rs 14.80 crore. The Tata Group’s market capitalization was Rs 1.55 lakh crore on Monday. The stock has a beta of 1.2, suggesting strong volatility over the course of a year.
In terms of technicals, Tata Steel’s relative strength index (RSI) is 47, indicating that it is neither overbought nor undersold. Tata Steel shares are trading above the 5-day, 10-day, 50-day, 100-day, 150-day, and 200-day moving averages but below the 20-day and 30-day moving averages.
Here’s what technical experts and brokerages had to say about the Tata Group stock’s prospects.
Fitch Ratings increased its issuer default rating (IDR) to ‘BBB-‘ from ‘BB+’ last week while maintaining a stable outlook. Fitch Ratings has also upgraded ABJA Investment’s (Tata Steel arm) $1 billion notes due in July next year to ‘BBB-‘ from ‘BB+’. Tata Steel guarantees the notes.
According to Fitch Ratings, the upgrade followed a revision in Tata Steel’s standalone credit profile to ‘bb+’ from ‘bb’ due to lower uncertainty and financial risk from its UK operations.
Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets, recommended that the Tata Group shares be held. A stop loss of Rs 118 might be set for a target price of Rs 139-145.
“On the daily graph of Tata Steel, we see a sideways movement with no clear pattern or direction.” The stock now has solid support between Rs 122-120. The RSI, a momentum indicator, is also trading sideways. The stock, however, outperforms the benchmark indices. As a result, one may hold the stock at present levels with a stop loss of Rs 118 with goals of Rs 139-145 in the coming weeks,” Vasudeo added.
Incred Equities has assigned the stock a cut call with a target price of Rs 70.
According to Morgan Stanley, “with rising inflation and increasing interest rates, the Western world will experience steel demand damage, leading to a huge destocking-led fall in prices.”
“The steel market is likely to face continued downward pressure in the foreseeable future, leading to no improvement in steel spreads.” Tata Steel is worth 0.7 times FY23F BV, resulting in a target price of Rs 70. “Retain the LOWER rating on it,” said the brokerage.
Pravesh Gour, Senior Technical Analyst at Swastika Investment, believes Tata Steel should be held for a target price of Rs 142. A Rs 123 stop loss should be set.
“On the daily graph, Tata Steel saw a breakout of a triangle formation.” It retested its previous breakout and launched a new run up towards Rs 135 per share. The overall structure appears to be favorable for short-term trading because it is trading above its main moving averages. On the upside, Rs 135 is the vulnerable mark; beyond this, Rs 142 is the counter’s near-term goal. “Set a stop-loss at Rs 123,” Gour advised.
According to Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, Tata Steel stock will reach the Rs 150 mark.
“The Tata Steel stock has resistance close Rs 135 and is cooling off a bit, with near-term support at Rs 123.” “A strong break above Rs 135 will trigger a breakout with the next predicted target of Rs 145-150 levels,” Parekh added.
ICICI Securities has maintained an add call on the stock, raising the target price to Rs 150 from Rs 135.
“The developments surrounding Tata Steel UK are likely to ensure the business’s future readiness in terms of both profitability and ESG.” As the consultation process progresses, we anticipate further restructuring expenses as well as policy support. Given Tata Steel UK’s improved operational prospects and lower parent assistance, we increased our valuation multiple to 6x (from 5.5x), resulting in a revised target price of Rs 150 (from Rs 135). “The brokerage maintains its ADD rating on Tata Steel stock,” it stated.
Disclaimer: Stock market news provided by Axpert Media is for informational purposes only and should not be taken as financial advice. Before making any investing choices, readers should speak with a certified financial counselor.