Tata Steel shares top Sensex losers amid market crash; where is the metal stock headed?

Shares of Tata Steel Ltd were the top losers as Sensex and Nifty tumbled amid profit-booking today. Tata Steel shares closed 4.21% lower at Rs 129.70 on BSE against the previous close of Rs 135.40 on BSE. Tata Steel stock opened higher at Rs 135.90 on Monday. During the session, the stock hit an intraday low of Rs 128.70. Market cap of the firm fell to Rs 1.59 lakh crore. Total 41.79 lakh shares changed hands amounting to a turnover of Rs 55.40 crore on BSE. On NSE, Tata Steel stock was the third-highest loser, falling 4.84% to Rs 128.85.

Tata Steel stock fell to a 52-week low of Rs 101.60 on December 26, 2022 and hit a 52 week high of Rs 137.65 on December 18, 2023.

Tata Steel stock has a one-year beta of 0.2, signaling low volatility during the period.

In terms of technicals, the relative strength index (RSI) of Tata Steel stood at 71.4, signaling it's trading in the overbought zone. Tata Steel shares are trading lower than the 5 day, 10 day, 20 day but higher than the 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Tata Steel shares have rallied 105.42% in three years and risen 16.95% in a year.

Kkunal V Parar, VP of Technical and Algo Research, Choice Broking said, "Any dip towards Rs 128-125 levels is a strong buying zone where 20 DEMA is placed as CNX METAL Index had already given a breakout from its Ascending Triangle Pattern with Measuring Gap Pattern, which is a strong Breakout Pattern. Any dip towards Rs 125 level is a strong accumulation level. Our view is Buy on dips in Tata Steel for further upside momentum for the targets of Rs 165-175 and our view will negated only below Rs 125 levels."

Abhijeet from Tips2trades said, "Tata Steel is bearish on the Daily charts with next resistance at 138. A Daily close below support of 128 could lead to target of 115  in the near term."

Pravesh Gour, senior technical analyst at Swastika Investmart said, "Tata Steel is in a classical uptrend with a breakout of Flag formation with strong volumes. The stock is making higher high-low formations on the daily chart. The overall structure is bullish, as the scrip trades above its key moving averages. One can take a position on the counter at around Rs 135.40, as the stock has created a strong base around Rs 128 (20-DMA). One can look at the target of Rs 145."

Gaurav Bissa, Vice-President, InCred Equities said, "Nifty Metal witnessed a strong breakout on the weekly charts, which pushed many of the metal names into a new zone. Tata Steel has been in consolidation for a while now with some underperformance against its peers. It has witnessed a bullish triangle pattern breakout on the weekly charts, which can give a strong thrust to stock price. The RSI is trading near its previous swing high of 70 which once crossed can increase the pace of momentum and a bullish MACD crossover on the weekly timeframe is likely to ensure the trend remains strong."

Meanwhile, Sensex slipped 931 points to 70,506 and Nifty closed 303 points lower at 21,150 as stock market saw profit-booking from record highs.

 Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Also Read: Sensex slumps 931 points: Rs 9.1 lakh crore investor wealth lost; Indiabulls Housing, IOB down up to 11%