Tata Steel Share Price Tumbles 4.6%; Critical Support at Rs 128.20
Tata Steel share price declined by 4.6 percent and the stock is currently trading near 52-week lows. As broader markets witnessed selling in today's trade, many stocks witnessed deep declines. Tata Steel touched an intraday low of Rs 131.35 and a strong support is quite close at Rs 128.2. The support level is also 52-week low for Tata Steel. The stock has declined 23 percent over the last six months.
Tata Steel, a titan of the Indian steel industry, remains a cornerstone for investors seeking long-term growth. Currently trading at Rs 138.36, the stock is near its 52-week low of Rs 128.20, signaling potential value for buyers. With a market capitalization of Rs 1.65 lakh crore, the company boasts a legacy of resilience but faces challenges from global economic uncertainty and rising competition. This article dives into Tata Steel’s financial metrics, technical patterns, and competitive landscape, offering actionable insights for both traders and long-term investors.
Stock Overview
| Metric | Value |
|---|---|
| Open (Rs) | 138.36 |
| High (Rs) | 138.39 |
| Low (Rs) | 131.35 |
| Market Cap (Rs Cr) | 1.65LCr |
| P/E Ratio | 56.09 |
| Dividend Yield (%) | 2.73% |
| 52-Week High (Rs) | 184.60 |
| 52-Week Low (Rs) | 128.20 |
Recent Analyst Recommendations
Brokerage Opinions
Motilal Oswal: Recommends a “Hold” rating with a target price of Rs 145, citing steady domestic demand but concerns over declining global steel prices.
HDFC Securities: Suggests a “Buy” call with a target price of Rs 155, emphasizing Tata Steel’s efficient cost management and ongoing deleveraging efforts.
ICICI Direct: Maintains a “Neutral” rating, noting short-term challenges in export markets but long-term resilience due to domestic infrastructure spending.
Technical Analysis: Candlestick Patterns
Candlestick Observations
The stock recently formed a "Doji" candlestick on the daily chart, reflecting indecision among traders.
A prior downtrend strengthens the Doji’s implication of a potential reversal if confirmed by subsequent bullish candles.
Actionable Insight
Investors should monitor the Rs 140 level for confirmation of a bullish breakout, with targets at Rs 150 and Rs 155.
Technical Analysis: Fibonacci Levels
Using the 52-week high of Rs 184.60 and 52-week low of Rs 128.20, the Fibonacci retracement levels are as follows:
| Fibonacci Level | Price (Rs) |
|---|---|
| 0% (52-week low) | Rs 128.20 |
| 23.6% Retracement | Rs 142.16 |
| 38.2% Retracement | Rs 151.27 |
| 50% Retracement | Rs 156.40 |
| 61.8% Retracement | Rs 161.53 |
| 100% (52-week high) | Rs 184.60 |
Actionable Insight
If the stock breaks above Rs 142.16 (23.6%), it could aim for Rs 151.27 (38.2%) in the short term. A sustained move below Rs 128.20 may signal further downside.
Technical Analysis: Support and Resistance Levels
Support Levels
Rs 131.35: Short-term support from recent lows.
Rs 128.20: Critical support at the 52-week low.
Resistance Levels
Rs 140.00: Immediate resistance level.
Rs 150.00: Medium-term resistance to watch.
Actionable Insight
Traders could enter near Rs 135 with targets at Rs 150 and Rs 155, using a stop-loss at Rs 128.00.
