Tata Steel shares in an uptrend, overbought on charts; can they breach record high?

Tata Steel share price today: Shares of Tata Steel are in an uptrend, rising for the seventh straight session on Monday. With the current leg of rally, Tata Steel stock has entered into the overbought zone. The relative strength index (RSI) of Tata Steel stood at 71.3, signaling it's trading in the overbought zone. In the last seven session, the stock has gained 14%. 

In the current session, the metal stock climbed 2.22% to Rs 170.20 on BSE. Market cap of the firm rose to Rs 2.11 lakh crore. Total 23.54 lakh shares changed hands amounting to a turnover of Rs 39.82 crore on BSE.

The Tata Group stock has a one-year beta of 1.5, signaling high volatility during the period. In terms of technicals, the relative strength index (RSI) of Tata Steel stood at 71.3, signaling it's trading in the overbought zone.

The Tata Group stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages indicating that the stock is in bullish zone.

Shares of Tata Steel hit 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 30.97% in a year and risen 20.76% in 2024.

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

Vishnu Kant Upadhyay, AVP - Research and Advisory at Master Capital Services is bullish on the stock with a target price of Rs 176. Stop loss can be fixed at Rs 150. 

"Tata Steel has given a consolidation breakout, accompanied by a spike in volumes, which strengthens the case for initiation of fresh bullish rally in stock. The stock now appears favourable for bulls, presenting a strong opportunity. Stock is currently trading above the 21-day EMA, it signals strength, while the MACD suggests that positive momentum is likely to continue, further supporting a bullish outlook," said Upadhyay.