Tata Steel share price closed almost flat while majority of Indian stocks staged a smart recovery in today's session. Tata Steel and SAIL have suffered after US President triggered trade war fears with his planned tariffs. Tata Steel and SAIL had staged a very swift recovery from 52-week lows in March but now we are again near the yearly lows for both the steel majors. Jindal Stainless and JSW Steel are looking neutral on technical charts at the moment. If market sentiment remains neutral, we can expect recovery in Tata Steel as well. However, if selling come to scare traders once again, we can see Tata Steel drifting towards yearly lows again.

Tata Steel Struggles Near Support Zone, But Long-Term Bulls Remain Hopeful

Tata Steel’s recent stock movement reflects the broader volatility in global metals, as the company trades closer to its 52-week lows despite its blue-chip reputation. While weak demand and macro uncertainty have weighed on sentiment, the stock’s strong fundamentals, healthy dividend yield, and cyclical recovery potential keep it relevant on institutional radars. Technical indicators suggest the stock is in a critical zone, potentially poised for a rebound or breakdown.

Stock Snapshot: Tata Steel Trades Near Yearly Support Levels

Tata Steel opened at Rs 134.89, reached a high of Rs 136.20, and dipped to a session low of Rs 128.02. The stock has seen a sharp correction from its 52-week high of Rs 184.60, with a recent low of Rs 122.62. Its attractive dividend yield of 2.77% continues to provide comfort for yield-seeking investors in uncertain market conditions.

Candlestick Chart Analysis: Bearish Bias Still Lingers

On the daily charts, Tata Steel formed a long lower shadow candle—suggesting buying at lower levels but not enough momentum to cross resistance. Recent patterns show a mix of indecision (doji formations) and lower highs, which signal weakness in the current trend.

Unless the stock breaches the Rs 137–139 supply zone decisively, the bias remains negative. Traders should watch for a bullish engulfing pattern or a higher close above Rs 140 for any sign of reversal confirmation.

Recent Brokerage Views: Mixed Sentiment With a Cautious Tone

Several brokerages have shared updated views on Tata Steel within the last three months:

Motilal Oswal (March 2025): Maintains a Neutral rating with a target price of Rs 150, citing near-term headwinds in European operations and high input costs.

JM Financial (February 2025): Assigned a Buy rating with a target of Rs 165, highlighting prospects of improved realizations and domestic demand pickup in H2FY26.

HDFC Securities (January 2025): Downgraded the stock to Reduce, target Rs 132, citing margin pressures and lack of clarity around European asset restructuring.

Fibonacci Levels: Critical Midpoint Breached

Applying Fibonacci retracement from the 52-week low (Rs 122.62) to high (Rs 184.60):

The 23.6% level near Rs 137.70 is now the first resistance. Sustaining above this could lead to a move toward Rs 147–153. On the downside, support lies at Rs 128 and further at the 52-week low of Rs 122.62.

Support and Resistance Matrix

Until the stock moves past Rs 137 with volume confirmation, traders are advised caution. Below Rs 122, a new downtrend could emerge.

Outlook and Investment Strategy: Wait for Confirmation

While Tata Steel’s long-term fundamentals remain intact, technical indicators suggest caution in the short term. The risk-reward ratio improves closer to Rs 125–128, making it attractive for investors with a 12–18 month horizon.

Traders should monitor the Rs 137 resistance and avoid fresh positions until a confirmed breakout occurs. Long-term investors may consider accumulating in tranches near the Rs 122–128 range.