Tata Steel shares in a free fall for five sessions, right time to buy?

Tata Steel share price today: Shares of Tata Steel fell for the fifth straight session for the sixth straight session today in line with correction in the Sensex and Nifty today. The metal stock has corrected 7% in five sessions. The BSE metal index and Sensex have lost 4.47% and 3.55%, respectively during the period. In the current session, the stock slipped 4.62% intra day to Rs 156.70 on BSE.  

Market cap of the firm slipped to Rs 1.98 lakh crore. Total 8.94 lakh shares changed hands amounting to a turnover of Rs 14.16 crore on BSE.

Tata Steel stock has a one-year beta of 1.4, signaling high volatility during the period. In terms of technicals, the relative strength index (RSI) of Tata Steel stood at 61.7, signaling it's trading neither in the overbought nor in the oversold zone.

The Tata Group stock is trading lower than the 5 day, 10 day, 20 day, 100 day, 150 day but higher than the 30 day, 50 day and 200 day moving averages. 

Tata Steel shares rose to a record high of Rs 184.60 on June 18, 2024 and fell to a 52 week low of Rs 114.25 on November 2, 2023. 

Tata Steel shares have rallied 26.3% in a year and risen 53.88% in two years.

Morgan Stanley has upgraded Tata Steel to an 'equal-weight' call while its price target was raised nearly 30 percent to Rs 175.

JM Financial has assigned a price target of Rs 180 on Tata Steel for 12 months. The brokerage has a BUY call on the stock.

International brokerage Jefferies has a buy call on Tata Steel with a target price of Rs 200 per share. 
The brokerage said Tata Steel intends to infuse $2.1 billion into an overseas holding company to refinance existing debt at its offshore entities and to cover restructuring costs in the UK. 

Jefferies sees a stronger volume rise in FY26 (16%) compared to FY25 (7%). Despite potential risks from weak Asian steel prices and imports from China, lower coking coal prices are expected to support margins. 

Jefferies expects Tata Steel Europe’s EBITDA per tonne to improve from a loss of $40 in 4QFY24 to breakeven in FY25 and $20 in FY26.

Subash Gangadharan, a technical analyst at HDFC Securities  has assigned a price target of Rs 175/ Rs 188. One should fix stop loss at Rs 150 and time period of the call is two months. 

"After a fall in the last few months, Tata Steel has found support near the Rs 142 levels and bounced back," said Gangadharan.

SMC Global Securities has a buy call with a target price of Rs 180-183. Stop loss for the stock is fixed at Rs 149. 

"Tata Steel reached a 52-week high of Rs 184.60 in June but has since been trading lower, forming a series of lower highs on the daily charts. Recently, it found support around the Rs 145 level and rebounded, surpassing the key resistance mark of Rs 160 after a period of consolidation near its 200-day exponential moving average. Technically, the stock maintains a bullish outlook, as prices are rising in a pattern of higher highs and higher lows on the weekly charts. Additionally, positive divergences in secondary oscillators, along with the upward price movement, indicate a potential upswing for the stock. Therefore, one can buy the stock in range of Rs 163-165 for the upside target of Rs 180-183 levels with stop loss below Rs 149 levels," said the brokerage.