Tata Steel Share Price Jumps 3.6%; Bullish Target at Rs 146 and 153
Tata Steel Share price jumped 3.6 percent today after reports of steel major planning fund raising. Tata Steel took support near 52-week lows and the stock has witnessed strong buying from lower levels. Earlier report by TopNews suggested that above Rs 136, Tata Steel could gain further momentum. The technical charts suggest further strength for Tata Steel.
Candlestick Analysis for Tata Steel
Recent Pattern Observed: The stock has formed a bullish engulfing pattern on the daily charts, indicating a potential reversal from recent lows.
Trend Indications: The stock is consolidating within a range, with a resistance near Rs 161.21 and strong support around Rs 135.86.
Momentum Check: The Relative Strength Index (RSI) is near 45-50, suggesting neutral momentum but a possible move towards overbought levels if price action remains strong.
| Level | Price (Rs) |
|---|---|
| 0.0% (High) | 184.60 |
| 23.6% | 170.67 |
| 38.2% | 161.21 |
| 50.0% | 153.61 |
| 61.8% | 146.01 |
| 78.6% | 135.86 |
| 100.0% (Low) | 122.62 |
| Support Levels (Rs) | Resistance Levels (Rs) |
|---|---|
| 122.62 | 161.21 |
| 135.86 | 170.67 |
| 146.01 | 184.60 |
Stock Performance and Market Reaction
Tata Steel’s stock price jumped over 3% on February 12, positioning it as the top performer among index heavyweights. The surge comes amid reports of the company’s plans to re-enter the corporate bond market and a recent credit rating upgrade, both of which have bolstered investor confidence.
Return to the Corporate Bond Market
According to a Reuters report citing insider sources, Tata Steel is actively working on re-entering the corporate bond market after nearly a year of absence. The company has initiated discussions with merchant bankers and investors, exploring multiple tenors before finalizing the most favorable options. "The company is currently negotiating with financial institutions and assessing various tenors, selecting one or two based on the most competitive levels available," a source familiar with the matter told Reuters.
This strategic move is expected to strengthen Tata Steel’s financial position by diversifying its funding sources and optimizing capital structure.
Credit Rating Upgrade Bolsters Market Confidence
Adding to the positive momentum, Tata Steel recently received a credit rating upgrade from India Ratings, a Fitch Group subsidiary. In a regulatory filing dated February 11, the company announced that its debt instrument rating had been elevated from ‘AA+’ Positive to ‘AAA’ Stable’.
This upgrade underscores Tata Steel’s strong financial health, improved leverage, and robust operational performance, reinforcing its credibility in the debt market. The ‘AAA’ rating reflects the highest level of creditworthiness, likely leading to better financing terms and lower borrowing costs.
Outlook and Strategic Implications
Tata Steel’s efforts to tap into the corporate bond market and its improved credit rating highlight its commitment to financial resilience and growth. As the company refines its debt profile and expands funding avenues, market participants will be closely monitoring its bond issuance strategy and long-term financial trajectory.
With renewed investor confidence, Tata Steel appears well-positioned to capitalize on growth opportunities in the evolving steel industry landscape.
