Tata Steel Share Price Remains Above 52-week Lows; Important Support at Rs 122
Tata Steel has managed to take support near its 52-week lows. While the stock is still in downtrend, medium and long term investors can buy the stock in short quantities and add if it declines further. Tata Steel opened today's session at Rs 128 and touched an intraday low at Rs 126.56 before closing at Rs 127.70.
Tata Steel Limited, one of India’s leading steel manufacturers, remains a focal point in the stock market due to its vast production capabilities, robust operational footprint, and historical market influence. Currently trading at Rs 128.00, the stock is navigating within a 52-week range of Rs 122.62 to Rs 184.60. The company’s P/E ratio of 54.27 and dividend yield of 2.82% position it as a stable choice for investors seeking a blend of growth and income. This article examines Tata Steel’s performance, recent analyst reviews, and key technical indicators, offering actionable insights for potential investors.
Key Financial Metrics
| Metric | Value |
|---|---|
| Current Price | Rs 128.00 |
| 52-Week High | Rs 184.60 |
| 52-Week Low | Rs 122.62 |
| Market Cap | Rs 1.60 Lakh Crore |
| Price-to-Earnings (P/E) Ratio | 54.27 |
| Dividend Yield | 2.82% |
Tata Steel’s valuation reflects investor confidence in its long-term growth. The attractive dividend yield provides additional appeal, making it a potential candidate for both income and growth investors.
Technical Analysis
1. Candlestick Patterns
A Bullish Engulfing pattern appeared on the daily chart, suggesting a potential trend reversal from the recent support level near Rs 126.
This pattern indicates renewed buying interest and could signal the beginning of an upward move if confirmed by higher trading volumes.
2. Fibonacci Levels
Using the recent high of Rs 128.47 and low of Rs 126.56, the Fibonacci retracement levels are:
| Fibonacci Level | Price (Rs) |
|---|---|
| 23.6% | Rs 127.85 |
| 38.2% | Rs 127.42 |
| 50.0% | Rs 127.02 |
| 61.8% | Rs 126.61 |
| 100.0% | Rs 126.56 |
3. Support and Resistance Levels
Support: Rs 126 and Rs 123
Resistance: Rs 129 and Rs 135
A breakout above Rs 129 with volume could signal further upside, while a decline below Rs 126 may suggest short-term weakness.
Actionable Insights for Investors
Short-Term Opportunities: Traders can consider entering near Rs 126.50, targeting Rs 129–135 in the near term, if the Bullish Engulfing pattern confirms a reversal.
Long-Term Strategy: Long-term investors may find Tata Steel’s dividend yield and ongoing expansions appealing. Accumulating on dips below Rs 126 could present a solid entry point.
Key Risks: Monitoring global steel price fluctuations and Tata Steel’s debt levels is essential for informed decision-making.
